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Income Tax Appellate Tribunal, “A” BENCH, MUMBAI
O R D E R
PER MAHAVIR SINGH, JM:
This appeal by the assessee is arising out of the order of the CIT-(A)-41, Mumbai in appeal No.CIT(A)-17/IT-21/2011-12 dated 23-08-2013. Assessment was framed by the DCIT, Circle- 2(2), Mumbai for the assessment year 2002-03 vide his order dated 28-03-2005 u/s 143(3) of the Income Tax Act, 1961 (hereinafter ‘the Act’). Penalty u/s 271 (1) (c) of the Act was levied by the DCIT- 8(2), Mumbai vide his order dated 25-03-2011.
The only issue in this appeal of the assessee is against the order of the CIT (A) confirming levy of penalty u/s 271 (1) of the Act.
At the outset, the learned Counsel for the assessee submitted that the quantum appeal on which penalty was levied was challenged by the assessee before the Tribunal in and the Tribunal vide order dated 02-03-2016 has allowed the appeal by deleting the disputed addition on which penalty was levied. In view of this, he requested that penalty levied on the assessee be deleted.
4. We have heard the rival contentions and gone through the facts and circumstances of the case. On perusal of records, we find that the quantum addition has been made by the AO on account of freight paid (inland waterways
Rs. 6,67,802/- to Iraq Inland Waterways Authority on the basis of allegation in the Volckar Committee Report. This addition has been deleted by the Tribunal in order dated 02-03-2016 on this issue. We also find that the penalty under section 271 (1) (c) of the Act was levied on this issue by the AO. Hence, the orders of the authorities below levying penalty on the assessee do not survive. In view of this, we delete the penalty and allow the appeal of the assessee.
In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 20-10-2016.