DCIT, CIRCLE-5(1), KOLKATA vs. EMAMI REALTY LIMITED, KOLKATA

The Registry has pointed out that the appeal is time barred by four days. The Revenue has filed an application for condonation of delay, wherein it has been submitted that actual delay is of only three days and this delay is happened on account of movement of file for necessary approvals. Considering the short period of delay of three days, we deem it appropriate to condone the delay and proceed to decide the appeal on merit.

With the assistance of ld. Representatives, we have gone through the record carefully. It emerges out from the impugned order that penalty has been deleted by the ld. CIT(Appeals) on the ground that addition, which is the foundation for levy of penalty, has already been deleted in the quantum appeal. The finding of the ld. CIT(Appeals) in this regard reads as under:- “In the instant case, appellant filed its income tax return for the A.Y. 2021-22 on 07.03.2022 declaring gross total income of Rs.3,11,97,970/-. In the assessment order passed u/s 143(3), learned assessing Officer has made total addition of Rs.374,53,83,754/- u/s 56(2)(x) of the Act by disregarding the scheme of demerger holding it to be non-tax neutral in excess of jurisdiction. Further, the AO has imposed penalty amounting to Rs.179,40,75,182/- u/s 270A of the Act for misreporting of income”.

Since the quantum addition has already been deleted, therefore, no penalty is leviable upon the assessee and accordingly

In the result, the appeal of the Revenue is dismissed.