DY.C.I.T. 5(1) (1), MUMBAI V. SHRI CHETAN RAMANIKLAL SHAH, MUMBAI

ITA 2466/MUM/2021

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 1328 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-05-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 26-12-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 68; 271(1)(c); 143(3)

Judgement Text

ITA No. 2466/Mum/2021 A.Y. 2007-08 ACIT, Circle 5(1)(1) Vs. Shri Chetan Ramniklal Shah 1 IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI AMARJIT SINGH, ACCOUNTANT MEMBER ITA No.2466/Mum/2021 (A.Y. 2007-08) ACIT, Circle 5(1)(1) R.No. 568, Aaykar Bhavan, M.K. Road, Mumbai- 400 020 Vs. Shri Chetan Ramniklal Shah, 103 Shreeji Chambers, Tata Road, No.2, Opera House, Mumbai - 400004 स्थायी लेखा सं./जीआइआर सं./PAN/GIR No: AAJPS7227C Appellant .. Respondent Appellant by : Sandeep Rai Respondent by : None Date of Hearing 25.05.2022 Date of Pronouncement 25.05.2022 आदेश / O R D E R Per Amarjit Singh (AM): The present appeal filed by the revenue is directed against the order passed by the ld. CIT(A)-53, Mumbai, which in turn arises from the penalty order passed by the A.O. u/s 271(1)(c) of the Income Tax Act, 1961, for A.Y. 2007-08. The revenue has assailed the impugned order on the following grounds before us: “Whether on the facts and circumstances of the case and in law, the ld. CIT(A) erred in deleting the penalty u/s 271(1)(c) of the I.T. Act, 1961 of Rs.3,76,20,132/- without considering the fact that the ITAT’s order of deleting the ITA No. 2466/Mum/2021 A.Y. 2007-08 ACIT, Circle 5(1)(1) Vs. Shri Chetan Ramniklal Shah 2 quantum addition has not been accepted by the Revenue and further appeal before the Hon’ble Bombay High Court has been filed by the Department. The appellant prays that the order of the ld. CIT(A) be set aside and the order of the A.O be restored.” 2. The fact in brief is that assessment u/s 143(3) r.w.s 147 of the Act was passed on 31.03.2015 treating unsecured loan of Rs.11,06,80,000/- as unexplained cash credit u/s 68 of the Act. The ld. CIT(A) has dismissed the appeal of the assessee. Therefore, the A.O has levied penalty of Rs.3,76,20,132/- u/s 271(1)(c) dated 08.01.2018. 3. Aggrieved, the assessee has filed the appeal before the ld. CIT(A). The ld. CIT(A) has deleted the addition stating that ITAT, Mumbai has deleted the quantum addition of Rs.11,06,80,000/- vide order dated 09.03.2019. 4. At the outset, the ld. Counsel has brought to our notice that quantum addition on the basis of which impugned penalty was levied had been deleted by the ITAT, Mumbai, vide order dated 19.03.2019, therefore, there is no merit in the appeal of the revenue. On the other hand, the ld. D.R could not controvert this fact that impugned penalty has been deleted by the ITAT, Mumbai as referred by the ld. Counsel. 5. Heard both the sides and perused the material on record. The ITAT, Mumbai, vide order No. 3751/Mum/2017 dated 19.03.2019 has deleted addition of Rs.11,06,80,000/- made by the A.O u/s 68 of the Act. We consider that where addition made in the assessment order on the basis of which penalty for concealment was levied are deleted, there remains no basis of which penalty for concealment was levied. Therefore, we don’t ITA No. 2466/Mum/2021 A.Y. 2007-08 ACIT, Circle 5(1)(1) Vs. Shri Chetan Ramniklal Shah 3 find any infirmity in the decision of ld. CIT(A). Accordingly, the appeal of the revenue stand dismissed. 6. In the result, the appeal of the revenue stand dismissed. Order pronounced in the open court on 25.05.2022 Sd/- Sd/- (VIKAS AWASTHY) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 25.05.2022 PS: Rohit आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : 1. अपीलाथी / The Appellant 2. प्रत्यथी / The Respondent. 3. संबंधधत आयकर आयुक्त / The CIT(A) 4. आयकर आयुक्त(अपील) / Concerned CIT 5. धिभागीय प्रधतधनधध, आयकर अपीलीय अधधकरण, अहमदाबाद / DR, ITAT, Mumbai 6. गार्ड फाईल / Guard file. आदेशानुसार/BY ORDER, सत्याधपत प्रधत //True Copy// (Asst. Registrar) ITAT, Mumbai