DCIT 5(3), MUMBAI vs. THE GREAT EASTERN SHIPPING CO. LTD, MUMBAI
In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
Since the original disallowance under Section 14A was deleted by the Tribunal, the penalty levied on that disallowance has no basis. The CIT(A) had also deleted the penalty following the Tribunal's order.
What were the facts?
The revenue filed an appeal against a penalty levied under Section 271(1)(c) related to a disallowance under Section 14A. The Tribunal had previously deleted the disallowance in the quantum appeal.
What were the issues?
Whether penalty under Section 271(1)(c) can be sustained when the underlying disallowance under Section 14A has been deleted by the Tribunal.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “G”, MUMBAI
Before: SHRI AMIT SHUKLA & SHRI ASHWANI TANEJA
आदेश ORDER �ी अशवनी तनेजा, ले स: PER ASHWANI TANEJA, AM: The present appeal has been filed by the revenue against impugned order dated 11.08.2014, in relation to the penalty proceedings under section 271(1)(c) whereby revenue has challenged levy of penalty of Rs.36,79,893/- on account of disallowance under section 14A.
2 द� �ेट ई�टन� �शि�पंग कंपनी �ल�मटेड M/s The Great Eastern Shipping Co. Ltd. ITA 6566/Mum/2014 2. It has been admitted by both the parties that, in the quantum appeal, the Tribunal has deleted the said disallowance which was made by the AO over and above what the assessee has offered the disallowance under section 14A.
In view of the aforesaid facts that in the quantum proceedings the Tribunal vide order dated 20.01.2014 in and 437/Mum/2012 has deleted the disallowance made by the AO under section 14A over and above what was suo moto disallowed by the assessee in its return of income, the penalty levied on such disallowance have no legs to stand. Even Ld. CIT(A) has deleted the penalty after following Tribunal order in the quantum proceedings. Accordingly, ground raised by the revenue is dismissed.
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