ANANT B TAWDE,MUMBAI vs. ITO 17(3)(1), MUMBAI

The only issue raised in all the grounds of appeal is against the upholding of penalty of Rs.17,14,704/- as imposed by the AO under section 271(1)(c ) of the Income Tax act, 1961. 3. At the time of hearing, the ld.AR of the assessee has brought to the notice of the Bench that the quantum addition on the basis of which the penalty of Rs.17,14,704/- was imposed by the AO has been deleted by the order of co-ordinate Bench of the Tribunal passed in ITA No.6362/Mum/2012 (AY-2008-09) dated 16.3.2016 and therefore, the ld.AR prayed that the penalty be deleted accodingly.

We have heard the rival contentions and perused the material on record. We find that the quantum addition on the basis of which the AO imposed the penalty of Rs.17,14,704/- has been deleted by the order of co-ordinate Bench passed in ITA No.6362/Mum/2012 (supra) and therefore, penalty as imposed by the AO and sustained by the ld.CIT(A) cannot be sustained as the very basis on which the penalty was imposed has been demolished by deleting the quantum addition. We, therefore, set aside the order of ld.CIT(A) and direct the AO to delete the penalty.

In the result, the appeal of the assessee is allowed. The above order was pronounced in the open court on 27th July, 2016. घोषणध खुरे न्मधमधरम भें ददनधंकः 27th July, 2016 को की गई । (JOGINDER SINGH) ( RAJESH KUMAR) Judicial Member Accountant Member भुंफई Mumbai: 27th July, 2016. व.नन.स./ SRL , Sr. PS आदेश की प्रतिलऱपप अग्रेपिि/Copy of the Order forwarded to : अऩीरधथी / The Appellant 1. प्रत्मथी / The Respondent. 2. आमकय आमुक्त(अऩीर) / The CIT(A)- concerned 3. आमकय आमुक्त / CIT concerned 4. ववबधगीम प्रनतननधध, आमकय अऩीरीम अधधकयण, भुंफई /

DR, ITAT, Mumbai concerned 6. गधर्ा पधईर / Guard file. आदेशधनुसधय/ BY ORDER,सहधमक ऩंजीकधय (Asstt.