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Income Tax Appellate Tribunal, ‘A’ BENCH : BANGALORE
This is an appeal filed by the assessee against the order of the CIT(A)-VI, Bangalore, dated 21/04/2010 confirming the penalty levied by the Assessing Officer (AO) u/s 271(1)(c) of the Income-tax Act, 1961[hereinafter referred to as 'the Act'] for the assessment year 2003-04.
M/s.Shaw Wallace Distilleries Ltd. Page 2 of 3 2. At the time of hearing, the learned counsel for the assessee submitted that the AO has levied the penalty on account of : (i) disallowance of write off of irrecoverable debt/advance of Rs.5,22,000/-; (ii) disallowance of claim in respect of Excise transport fees of Rs.1,37,06,961/-and (iii) disallowance of TDS payment made on behalf of sales promoter of Rs.2,28,95,853/-. The learned counsel for the assessee submitted that the appeal against the consequential additions travelled up to the Tribunal and the Tribunal had decided the issues in favour of the assessee and the additions have thus been deleted. He, therefore, submitted that the penalty order does not have any basis to stand. The learned counsel for the assessee has also filed a copy of the order of the Tribunal wherein the additions have been deleted.
Having regard to the rival contentions and the material on record and the decision of the co-ordinate bench of the Tribunal, we find that the additions have been deleted by the Tribunal. Since the very basis for the levy of penalty has been deleted by the Tribunal, we agree with the contentions of the learned counsel for the assessee that the penalty order does not have legs to stand. In view of the same, the penalty order is set aside. M/s.Shaw Wallace Distilleries Ltd. Page 3 of 3 4. In the result, the assessee’s appeal is allowed.