DEPUTY COMMISSIONER OF INCOME TAX , MADURAI V. RAMCO CEMENTS LIMITED , RAJAPALAYAM

ITA 748/CHNY/2025

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The case involves the Deputy Commissioner of Income Tax, Corporate Circle, Madurai as the appellant and Ramco Cement Ltd. as the respondent. The dispute arose from the imposition of a penalty by the Assessing Officer (AO) for the Assessment Year 2016-17, amounting to Rs.11,60,04,363, due to alleged inaccurate particulars of income. This penalty was linked to the disallowance of a claim for railway siding expenditure of Rs.33,51,95,223, which was initially disallowed in the assessment order. However, the penalty was later deleted by the Ld. CIT(A) based on the Tribunal's decision in a related quantum appeal, which had allowed the expenditure claim. The Revenue's appeal to the Tribunal contested the deletion of the penalty, arguing that the matter was still under consideration by the Hon'ble High Court, thus not final.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633584 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Other Referred Cases: IT(TP)A No.46/CHNY/2021 (AY 2016-17)
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M. K. BIJU; VIRTUAL
• Assessee Lawyers: S. MURALIDHAR; J. PRABHAKAR

Judgement Text

"आयकर अपीलीय अिधकरण ‘बी’ \u0010ा यपीठ, चे\u0016ई। IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI मा ननीय \u001bी मनु क ुमा र िग र, \u0010ा ियक सद! एवं मा ननीय एस. आर. रघुना था , लेखा सद! क े सम) BEFORE HON’BLE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI HON’BLE S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No.748/Chny/2025 िनधा :रण वष: /Assessment Year: 2016-17 The Dy. Commissioner of Income Tax, Corporate Circle, Madurai. Vs. Ramco Cement Ltd., Ramamandiram, Rajapalaym – 626 117. [PAN: AABCM 8375L] (अपीलाथ\u0007/Appellant) (\b यथ\u0007/Respondent) अपीलाथG की ओर से/Assessee by : Shri S.Muralidhar, FCA & Shri J. Prabhakar, FCA IJथG की ओर से /Revenue by : Shri M.K. Biju, CIT-DR (virtual) सुनवाई की तारीख/Date of Hearing : 04.06.2025 घोषणा की तारीख /Date of Pronouncement : 10.06.2025 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member): This appeal filed by the Revenue is directed against the order of the Ld. Commissioner of Income Tax (Appeals) NFAC, Delhi [CIT(A)] dated 21.01.2025 for Assessment Year 2016-17. 2. Brief facts of the case are that the AO vide impugned penalty order for AY 2016-17 imposed a penalty amounting to ITA No.748/Chny/2025 Ramco Cement Ltd. :- 2 -: Rs.11,60,04,363/- on the furnishing of inaccurate particulars of income. In quantum proceedings, the claim of railway siding expenditure of Rs.33,51,95,223/- were disallowed in the assessment order. 3. Aggrieved, assessee filed appeal before the Ld. CIT(A) challenging the imposition of penalty. The Ld. CIT(A) has deleted the penalty imposed by the AO, noting the result of the quantum proceedings, where the co-ordinate Bench of the Tribunal in IT(TP)A No.46/CHNY/2021 (AY 2016-17) has deleted disallowance relating to the claim of railway siding expenditure of Rs.33,51,95,223/- and allowed the appeal of the assessee. Aggrieved, revenue is in further appeal before us. 4. Before us, the Ld. DR, Mr. M.K.Biju, CIT has contended that against the Tribunal order in the quantum proceedings, the Revenue has filed appeal before the Hon’ble High Court hence the proceedings has not been reached finality. 5. Per contra, the Ld. counsel submitted that the Co-ordinate Bench of the Tribunal in IT(TP)A No.46/CHNY/2021 (AY 2016-17) has ITA No.748/Chny/2025 Ramco Cement Ltd. :- 3 -: deleted disallowance relating to the claim of railway siding expenditure of Rs.33,51,95,223/- and allowed the appeal of the assessee. He further contended that there is no stay by the Hon’ble High Court against the order of Tribunal passed in quantum proceedings. 6. We have heard the both parties. In the aforesaid facts and circumstances of the case, we are of the considered view that the Ld. CIT(A) has rightly deleted the penalty. It is judicially settled view that when the disallowance has been deleted by the Tribunal in quantum proceeding, the penalty does not survive. 7. In the result, the appeal filed by the Revenue is dismissed. Order pronounced on 10th day of June, 2025 at Chennai. Sd/- Sd/- (एस. आर. रघुनाथा) (S.R. Raghunatha) लेखा लेखा लेखा लेखा सद\u0011य सद\u0011य सद\u0011य सद\u0011य /Accountant Member (मनु क ुमार िग र) (Manu Kumar Giri) \u0010ाियक सद! / Judicial Member चे\u0013नई/Chennai, \u0016दनांक/Dated: 10th June, 2025. EDN/- आदेश क\u0019 \bितिल प अ े षत/Copy to: 1. अपीलाथ\u0007/Appellant 2. \b थ\u0007/Respondent 3. आयकर आयु\u000f/CIT, Chennai 4. िवभागीय \bितिनिध/DR 5. गाड\u0018 फाईल/GF "