Penalty u/s 271 alone will not Stand after Deletion of 54F Disallowance: ITAT [Read Order]

The Pune Bench of Income Tax Appellate Tribunal ( ITAT ) has held that penalty u/s 271 alone will not stand after deletion 54F disallowance.

The appellant, Mihir Madhavrao Suryawanshi file his return which claimed a deduction of Rs. 66,35,931/- under section 54F. the AO while conducting the assessment disallowed the deduction and imposed the penalty of Rs.13,66,999/- under section 271 (1)(c) of the Act and which was confirmed by the first appellate authority. Aggrieved by the order the assessee filed an appeal before the ITAT.

The Counsel for the appellant submitted that the co-ordinate bench of the Tribunal in the assessee’s quantum appeal has already deleted the 54F disallowance and therefore the penalty alone will not stand.

The Coram of Mr. R.S. Syal, Vice President, and Mr. S. Godara, Judicial Member while allowing the appeal has held that “we conclude that the penalty in issue herein has no legs to stand as a necessary corollary”.

Mr. M.R. Shirude and Mr. M.G. Jasnani appeared for the assessee and revenue respectively.

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