DCIT-15(3)(2), MUMBAI V. M/S. STRIDES PHARMA SCIENCE LTD., MUMBAI

ITA 136/MUM/2023

AI Insights

The case involves an appeal by the revenue against the order of the Ld. CIT(A)/NFAC, which deleted the penalty imposed under section 271(1)(c) of the Income Tax Act, 1961, for the Assessment Year 2011-12. The penalty was originally levied following a reassessment order that included a quantum addition of Rs. 58,99,67,000. However, this reassessment was quashed by the Tribunal in a separate quantum appeal, leading to the deletion of the penalty. The Tribunal in this case agreed with the Ld. CIT(A)'s decision, emphasizing that the penalty could not stand once the foundation (the reassessment order) was removed.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 299327 (ITAT-MUMBAI)
• Duration Of Justice: 3 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 15-03-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 15-01-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI ABY T. VARKEY, JM AND SHRI AMARJIT SINGH, AM आयकरअपीलसं/I.T.A. No.136/Mum/2023 (निर्धारणवर्ा /Assessment Year: 2011-12) DCIT-15(3)(2) Room No. 480, 4 th Floor, Aayakar Bhavan, M.K. Road Mumbai- 400020 बिधम/ Vs. M/s Strides Pharma Science Ltd. 201, Devavrata, Sector -17, Vashi, Navi Mumbai- 400703 स्थधयीलेखधसं./जीआइआरसं./PAN/GIR No. : AADCS8104P (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) सुनवाईकीतारीख /Date of Hearing: 16/03/2023 घोषणाकीतारीख /Date of Pronouncement: 21/04/2023 आदेश/ORDER PER ABY T. VARKEY, JM: This is an appeal preferred by the revenue against the order of the Ld. CIT(A)/NFAC dated 21.11.2022 for AY 2011-12. 2. At the outset it is noted that this is a department appeal challenging the action of the Ld. CIT(A) to have deleted the penalty levied u/s 271 (1) (c) of the Income Tax Act, 1961 (herein after ‘the Act’) based on the fact that the quantum assessment made by the AO have been deleted by Tribunal vide order dated 29.04.2022 in ITA No. 1450/Mum/2021. 3. We have gone through the order passed by the Tribunal in the assessee’s own case (quantum appeal) for AY 2011-12 wherein the Tribunal was pleased to quash the reassessment order, wherein AO had made quantum addition of Rs. Assessee by: Shri. Nishit Gandhi Revenue by: Shri. I Krishna Kumar, (Sr. AR) 2 ITA. NO 136/M/2023 AY 2011-12 M/s Strides Pharma Science Ltd 58,99,67,000/-. And since, the penalty was levied by AO u/s 271 (1) (c) of the Act, on the quantum addition passed in the re-assessment order, and since it stands quashed, the Penalty levied on the same also must fall because when the foundation goes super structure falls. Therefore, the Ld. CIT(A) rightly deleted the penalty levied by the AO and resultantly the appeal filed by the Revenue is dismissed. 4. In the result, the appeal of the revenue is dismissed. Order pronounced in the open court on this 21/04/2023. Sd/- Sd/- (AMARJIT SINGH) (ABY T. VARKEY) ACCOUNTANT MEMBER JUDICIAL MEMBER मुंबई Mumbai; दिनांक Dated : 21/04/2023. Shubham P. Lohar आदेशकीप्रनिनलनिअग्रेनर्ि/Copy of the Order forwarded to : आदेशधिुसधर/ BY ORDER, सत्यादपतप्रदत //True Copy// उि/सहधयकिंजीकधर /(Dy./Asstt.Registrar) आयकरअिीलीयअनर्करण,मुंबई / ITAT, Mumbai 1. अपीलार्थी/ The Appellant 2. प्रत्यर्थी/ The Respondent. 4. आयकरआयुक्त/ CIT 5. दवभागीयप्रदतदनदि,आयकरअपीलीयअदिकरण,मुंबई/ DR, ITAT, Mumbai 6. गार्डफाईल / Guard file.