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Income Tax Appellate Tribunal, “SMC” BENCH,
Before: SHRI D.KARUNAKARA RAO
Date of Hearing : 11.08.2015 Date of Pronouncement : 17.08.2016 O R D E R D.KARUNAKARA RAO, AM: 1. This is the appeal filed by the assessee against the order of CIT(A)- 34, Mumbai dated 20.03.2015. This appeal relates to penalty levied u/s 271(1)(c) of the Act. AO levied the penalty of Rs. 12,00,000/- vide his order dated 22.03.2015 in connection with the addition of Rs. 42,51,430/- on account of receipt of site development fund. CIT(A) dismissed the appeal of the assessee and confirmed the penalty.
Therefore, assessee is in appeal before us.
At the outset, Ld. Counsel for the assessee informed that the said penalty was levied in connection with the addition of Rs. 42,51,430/- and the said addition stands deleted by the Tribunal vide Appeal & 128/Mum/2012 dated 09.10.2015. In support of the same, the counsel brought our attention to the contents of para-14 & 15 of the order of the Tribunal. I find that the appeal on quantum stand allowed in favour of the assessee.
Considering the above subsequent developments, I am of the view that the penalty is not sustainable in view of the deletion of the addition in quantum appeals. Therefore, the grounds raised by the assessee stand allowed.
In the result, appeal of the assessee is allowed.
Order pronounced in the open court on this 17th day of August, 2016.