ACIT CC 39, MUMBAI vs. RACHNA LAND P.LTD, NAVI MUMBAI

This appeal by the Revenue is preferred against the order of the Ld. CIT(A)-41, Mumbai dated 29.10.2013 pertaining to Assessment year 2008-09.

The sole grievance of the Revenue is that the Ld. CIT(A) erred in deleting the penalty levied u/s. 271(1)(c) of the Act holding that the quantum addition made u/s. 69C of the Act has been deleted by the Tribunal.

The grievance of the Revenue is that the Department has not accepted the order of the Tribunal and has preferred an appeal before the Hon’ble High Court of Bombay therefore, the order of the Ld. CIT(A) is erroneous.

A perusal of the orders of the authorities below show that the penalty has been levied on the additions made u/s. 69C of the Act. The quantum addition went upto the Tribunal and the Tribunal by a consolidated order in & 8178/M/2011 dated 22.3.2013 has deleted the quantum addition.

Sublato fundaments credit Opus meaning – in the case the foundation is removed, super structure falls. As the quantum additions stands deleted, the penalty falls. Therefore, no interference is called for.

In the result, the appeal filed by the Revenue is dismissed.