ITAT Mumbai Judgments — July 2017

The Tribunal deleted the penalties in most cases, finding that the nature of the additions did not warrant penalty or that the underlying quantum additions were deleted or restored to the Assessing Officer. In one instance, the penalty was deleted as the quantum addition was fully deleted by the Tribunal.

The Tribunal noted that in a similar prior year, the issue was remitted to the Assessing Officer for fresh consideration. Therefore, the Tribunal remitted the current issue to the Assessing Officer with similar directions for fresh adjudication.

The Tribunal found that the CIT(A) erred in ignoring the AO's findings regarding the accommodation entry and the assessee's evasive replies. The Tribunal also noted that the assessee's plea for cross-examination of the entry operator was not dealt with.