ACIT CC 39, MUMBAI vs. ARPIT LAND P.LTD, MUMBAI

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ITA 971/MUM/2014Status: DisposedITAT Mumbai16 March 2016AY 2009-103 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the underlying addition in the quantum assessment proceedings was deleted, the penalty levied under section 271AAA of the Act could not survive. Therefore, the deletion of the penalty by the CIT(Appeals) was upheld.

What were the facts?

The Revenue appealed against the CIT(Appeals) order deleting a penalty levied under section 271AAA. The penalty was related to an addition made in quantum proceedings which had subsequently been deleted by the Tribunal.

What were the issues?

Whether penalty under Section 271AAA can be sustained when the corresponding addition in quantum proceedings has been deleted.

Which sections of the Income-tax Act were involved?

Section 271AAA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “A”, MUMBAI

Before: SHRI G.S.PANNU & SHRI JOGINDER SINGH

For Appellant: Shri Gulshan Raj
For Respondent: Shri Ramesh Jain
Hearing: 03/02/2016Pronounced: 16/03/2016

The captioned appeal by the assessee is directed against the order of CIT(A)-39, Mumbai dated 27/11/2013, which in turn has arisen from the order passed by the DCIT-39 dated 12/02/2013 under section 271AAA of the Income Tax Act, 1961 (in short ‘the Act’), pertaining to the Assessment Year 2009-10.

(Assessment Year : 2009-10) 2. In this appeal, the grievance of the Revenue is with respect to the decision of the CIT(Appeals) in deleting penalty levied under section 271AAA of the Act amounting to Rs.27,95,800/-.

3.

At the time of hearing, the Ld. Representative for the respondent assessee pointed out that the CIT(Appeals) has deleted the penalty for the reason that the corresponding addition made in the quantum proceedings has since been deleted by the Tribunal vide its order in & Others dated 22/3/2013. A copy of the said order has been placed on record and it is further asserted that the order of the Tribunal continues to hold the field as it has not been altered by any higher authority. The said factual matrix has not been controverted by Ld. Departmental Representative for the Revenue .

4.

As a consequence of the aforesaid fact-situation, we find no error on the part of the CIT(Appeals) in deleting the penalty under section 271AAA of the Act for the reason that corresponding addition made in the quantum assessment proceedings has already been deleted. Ostensibly, in such a situation, the penalty levied under section 271AAA of the Act does not survive and has been rightly deleted by the CIT(Appeals).

5.

In the result, the appeal of the Revenue is dismissed.

Order pronounced in the open court on 16/03/2016

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