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Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD
Before: DR. BRR KUMAR & SHRI SIDDHARTHA NAUTIYAL
O R D E R
PER DR. BRR KUMAR - ACCOUNTANT MEMBER:
Both the appeals have been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals), (in short “Ld. CIT(A)”), National Faceless Appeal Centre, (in short “NFAC”), Delhi, vide orders dated 02.05.2024 & 03.05.2024 passed for A.Ys. 2012-13 & 2013-14.
(A.Y. 2012-13) 2. The Assessee has taken the following grounds of appeal:-
“1. The learned Commissioner of Income Tax (Appeals) erred in law and on facts has confirmed the penalty of Rs.16,00,00,000/- levied under section 271(1)(c) of the Act on the additions made on account of disallowance out of Capital Grants & Subsidies and Consumers Contribution amounting to Rs.47,17,19,100/- without appreciating the fact that the impugned disallowance was a subject matter of long drawn discussion and debate. The learned Commissioner of Income Tax (Appeals) further erred in law and on facts has totally ignored the fact that on exactly identical facts the penalty for the immediately preceding year in the appellant’s own case has been fully deleted.
&1223/Ahd/2024 Gujarat State Electricity Corporation Ltd. vs. DCIT Asst. Years –2012-13 & 2013-14 - 2– 2. The appellant craves leave to add, alter, delete or modify the above ground of appeal either before or at the time of hearing of this appeal.”
3. At the outset, both the parties fairly submitted that the quantum issue involved in the case pertaining to Capital Grant has been set-aside to the Assessing Officer for examination. Hence, the penalty order levied on that issue passed by the Assessing Officer is subjected to the provision of Section 275(1A) of the Act. Hence, the penalty order passed in this is also being set- aside to the Assessing Officer.
In the result, the appeal of the assessee is allowed for statistical purpose.
“1. The learned Commissioner of Income Tax (Appeals) erred in law and on facts has confirmed the penalty of Rs. 33,00,00,000/- levied under section 271(1)(c) of the Act on the additions made on account of disallowance out of Capital Grants & Subsidies and Consumers Contribution and Liquidated Damages amounting to Rs. 26,94,59,496/- and Rs. 73,00,00,000/- respectively. The learned Commissioner of Income Tax (Appeals) ought to have appreciated impugned disallowances on account of Capital Grants & Subsidies and Consumers Contribution were a subject matter of long drawn discussion and debate. This apart the disallowances on account of Liquidated Damages were deleted by the Tribunal vide Order dated 31-10- 2023. The learned Commissioner of Income Tax (Appeals) further erred in law and on facts has totally ignored the fact that on exactly identical facts the penalty levied on account of capital grant & subsidies etc., for the immediately preceding year in the appellant’s own case has been fully deleted.
The appellant craves leave to add to, alter, delete or modify the above ground of appeal
either before or at the time of hearing of this appeal.”
6. At the outset, both the parties fairly submitted that the issue involved in the quantum appeal pertaining to liquidated damages stands adjudicated in &1223/Ahd/2024 Gujarat State Electricity Corporation Ltd. vs. DCIT Asst. Years –2012-13 & 2013-14 - 3– favour of the assessee. Hence, we hold that no penalty is leviable on this issue.
7. With regard to the issue of Capital Grants, the matter has been set- aside to the Assessing Officer is subjected to the provision of Section 275(1A) of the Act. Hence, the penalty order passed in this is also being set-aside to the Assessing Officer.
In the result, the appeal of the assessee is allowed for statistical purposes.
In the combined result, both the appeals filed by the assessee are allowed for statistical purposes.
The order is pronounced in the open Court on 23.10.2024
Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. BRR KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 23/10/2024 TANMAY, Sr. PS TRUE COPY आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant ��थ� / The Respondent. 2. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER,