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Income Tax Appellate Tribunal, MUMBAI BENCHES “E”, MUMBAI
Before: SHRI B.R.BASKARAN (AM) & SHRI RAM LAL NEGI (JM)
This appeal has been preferred by the assessee against order dated 09/09/2015 passed by the Ld. CIT(Appeals)-51 Mumbai for the Asst. Year 2005-06 whereby the Ld. CIT(A) deleted the penalty levied u/s 271(1)(c) of the Income Tax Act, 1961 (in short ‘the Act’). 2. The revenue has challenged the impugned order passed by the Ld. CIT(A) on the following effective grounds of appeal:-
1. “On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the penalty without appreciating that the penalty proceedings where correctly initiated as per section 271(1)(c) of the Act.”
2. “On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the penalty without appreciating the fact that at the time of levy of penalty, addition was confirmed and as on date appeal is still pending before the Hon’ble ITAT.”
At the very outset the Ld. Counsel for the assessee submitted that ITAT has decided the quantum appeal for the Asst. year 2005-06 in favour of the assessee therefore, the present appeal is liable to be set aside. The Ld. Departmental Representative did not controvert the contention of the assessee.
We have heard the rival submissions and also perused the material placed on record including the quantum appeal order passed by the coordinate Bench for the assessment year 2005-06. We notice that vide order dated 9.9.2016 the coordinate Bench has decided the quantum appeal filed by the revenue in favour of the assessee by confirming the deletion made by the Ld. CIT(A). Since, the quantum appeal has been decided in favour of the assessee, the penalty order does not survive. We therefore, dismiss both the grounds of the appeal of the revenue.
In the result appeal filed by the revenue for the Asst. year 2005-06 is dismissed.