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Income Tax Appellate Tribunal, “L” Bench, Mumbai
O R D E R Per B.R. Baskaran, AM :-
The assessee has filed this appeal challenging the order dated 5.3.3013 passed by learned CIT(A)-11, Mumbai partially confirming the penalty levied by the Assessing Officer u/s. 271(1)(c) of the I.T. Act.
We have heard the parties and perused the record. The Assessing Officer completed the assessment for the year under consideration by making following additions:-
a) Managerial fees assessed as fees for technical services ` 4.65 crores b) Disallowance of claim of set off of business loss ` 38.57 lakhs
In the appeal filed by the assessee before learned CIT(A) against the above said additions, the first appellate authority granted relief in respect of 2 Lloyd’s Register Group Limited managerial fees by 50% and confirmed the disallowance of claim of set off of business loss.
After the receipt of order of Ld CIT(A) in quantum appeal, the Assessing Officer levied penalty on the additions confirmed by learned CIT(A). The assessee challenged the penalty order by filing the appeal before learned CIT(A). The first appellate authority deleted the penalty levied on addition relating to managerial charges and confirmed the penalty levied on disallowance of claim of set off of business loss. Still aggrieved, the assessee has filed this appeal before us.
At the time of hearing, learned counsel appearing for the assessee submitted that the Tribunal has allowed claim of set off of business loss in its order dated 18.3.2006 passed in ITA No. 3138/Mum/2011. Accordingly he submitted that the penalty confirmed by learned CIT(A) on disallowance of claim of set off of business loss requires to be deleted.
We heard Ld D.R and perused the record. We notice that the learned CIT(A) has deleted penalty levied on the addition relating to the managerial fees and he has confirmed the penalty levied on claim of set off of business loss. Now, it is shown to us that the Tribunal, in the appeal relating to quantum assessment proceedings, has allowed the assessee to claim of set off of loss. Hence the penalty confirmed by Ld CIT(A) on said disallowance needs to be deleted as it no longer survives. Accordingly we set aside the order of learned CIT(A) on this issue and direct the Assessing Officer to delete the penalty levied on disallowance of claim of set off of business loss.
In the result, appeal filed by the assessee is allowed. Order has been pronounced in the Open Court on 25.5.2016.