MOHAMMED SHAMIM BADGUJAR,MUMBAI vs. ASST CIT 19(2), MUMBAI

PDF · subscribers
ITA 2487/MUM/2015Status: DisposedITAT Mumbai28 April 2017AY 1990-913 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since both the additions made under Sections 68 and 69 were deleted by the ITAT in the quantum appeal, the penalty levied on these additions is no longer sustainable and must be deleted.

What were the facts?

The Assessing Officer levied a penalty of Rs. 3,00,000/- under Section 271(1)(c) based on additions made under Sections 68 and 69. The assessee challenged these additions in a separate quantum appeal before the ITAT.

What were the issues?

Whether a penalty levied under Section 271(1)(c) can be sustained when the underlying additions forming the basis of the penalty have been deleted by the appellate tribunal.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 68,Section 69

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES “D”, MUMBAI

Before: SHRI B.R. BASKARAN (AM) & SHRI RAM LAL NEGI (JM)

Hearing: 28/04/2017Pronounced: 28/04/2017

O R D E R

PER RAM LAL NEGI, JM

1.

This appeal has been filed by the assessee against order dated 11/02/2015 passed by the Ld. CIT (A)- 34, Mumbai confirming the penalty of Rs. 3,00,000/- levied by the Assessing Officer u/s 271 (1) (c) of the Act for A.Y. 1990-91.

2.

We have heard the rival submissions and perused the record. The AO has levied the penalty on the following additions: a) Addition made u/s 68 of the Act Rs. 2,40,000/-. b) Addition made u/s 69 of the Act Rs. 2,50,000/-. Total Rs. 4,90,000/- 2 Assessment Year: 1990-91 Since, the Ld. CIT(A) confirmed the penalty the assessee has filed the present appeal before the Tribunal.

3.

At the time of hearing, the Ld. AR submitted that the assessee has challenged both the additions in the quantum of appeal before the ITAT. He further submitted that since the Tribunal has deleted both the additions vide its order dated 21/08/2015 passed in the impugned penalty is liable to be deleted.

4.

The Ld. DR did not controvert the facts presented by Ld. AR. We have also gone through the order dated 21/08/2015 passed by the Tribunal in the quantum appeal. We notice that the addition of Rs. 2,40,000/- made u/s 68 of the Act has been deleted by the Tribunal, vide paragraph 9 of its order. Similarly, the addition of Rs. 2,50,000/- made u/s 69 of the Act has been deleted by the Tribunal vide paragraph 13 of the order. Since both the additions have been deleted, the impugned penalty is liable to be deleted. Consequently, we set aside the impugned order passed by the Ld. CIT (A) and direct the AO to delete the penalty.

In the result, appeal filed by the assessee for the assessment year 1990- 91 is allowed.

More judgments on Section 271(1)(c)

All 25,141 judgments and leading authorities on Section 271(1)(c) →

Recent GST High Court judgments

Search GST case law →