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

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ITA 1790/MUM/2015Status: DisposedITAT Mumbai27 July 2016AY 2008-093 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the basis for imposing the penalty (the quantum addition) was deleted, the penalty could not be sustained. Therefore, the order of the CIT(A) upholding the penalty was set aside.

What were the facts?

The assessee's appeal was against a penalty imposed under Section 271(1)(c). The penalty was based on a quantum addition made by the Assessing Officer. However, the quantum addition itself was later deleted by a co-ordinate bench of the Tribunal.

What were the issues?

Whether a penalty imposed under Section 271(1)(c) can be sustained when the underlying quantum addition has been deleted.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, MUMBAI

Before: HON’BLE S/SHRI JOGINDER SINGH (JM), & RAJESH KUMAR,(AM)

Hearing: 20.7.2016Pronounced: 27.7.2016

Per RAJESH KUMAR, Accountant Member:

This is an appeal filed by the assessee and is directed against the order of the Ld. CIT(A)-32, Mumbai dt.12.1.2015 pertaining to A.Y. 2008-

09.2.

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.

4.

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.

5.

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 /

5.

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

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