ITAT confirms deletion of Penalty against ICICI Bank [Read Order]

The Income Tax Appellate Tribunal (ITAT), Mumbai Bench confirmed the deletion of penalty against ICICI Bank.

The assessee, ICICI Bank was engaged in the business of share and stockbroking including depository operations and proprietary trading in shares and securities.

The revenue filed an appeal against the order of CIT(A) on the grounds that the CIT(A) erred in deleting the penalty levied under section 271(1)(c) on the disallowance of depreciation on leased assets; disallowance of depreciation on sale and leaseback assets; disallowance of deduction under section 80M; premium on redemption of debentures; expenditure for increase in share capital; disallowance of expenses made under section 35D.

The assessee contended that most of the additions or disallowances, which formed the subject matter of levy of penalty, have either been deleted by the Tribunal or restored back to lower authorities for fresh adjudication and therefore, the penalty would not be even otherwise sustainable in law.

The two-member bench headed by the Vice President Mahavir Singh noted that the issue of disallowance of depreciation on leased assets has already been set aside by the coordinate bench to the file of AO for re-examination. Further, while confirming the deletion of penalty held that since the addition on the basis of which the penalty was levied does not survive, the penalty would not be sustainable.

The tribunal while deleting the penalty upheld the order of the coordinate bench of the Tribunal which deleted the penalty in respect of disallowance of depreciation on sale and leaseback assets, disallowance of depreciation on sale and leaseback assets; disallowance of deduction under section 80M; premium on redemption of debentures; expenditure for increase in share capital; disallowance of expenses made under section 35D.