ITAT Deletes Rs. 2.72 Crore Penalty as Additions in Quantum Assessment Were Deleted [Read Order]
Considering that additions in quantum assessment were deleted by the tribunal, the ITAT upheld the order of CIT(A), which deleted the penalty amounting to Rs. 2.72 Crore.
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The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) deleted the penalty under Section 271(1)(c) of the Income Tax Act, 1961 amounting to Rs. 2.72 crore as quantum assessment was deleted by the ITAT. Pinac Stock Brokers Private Limited (assessee) in this case the Assessing Officer (AO) had imposed the penalty pursuant to additions made in the quantum assessment. The AO imposed...
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) deleted the penalty under Section 271(1)(c) of the Income Tax Act, 1961 amounting to Rs. 2.72 crore as quantum assessment was deleted by the ITAT.
Pinac Stock Brokers Private Limited (assessee) in this case the Assessing Officer (AO) had imposed the penalty pursuant to additions made in the quantum assessment. The AO imposed a penalty amounting to Rs. 2 Crore.
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Aggrieved by the order of AO, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)]. The CIT(A) deleted the penalty citing the order of ITAT in which the quantum assessment was set aside.
Aggrieved by the CIT(A)’s order, the revenue filed an appeal before the ITAT. The Counsel for the Revenue submitted that although the additions were deleted, the Revenue had filed a Tax Appeal before the Gujarat High Court which was admitted, and therefore the matter should be kept alive.
On the other hand, The counsel for the assessee argued that the Gujarat High Court admitted the Questions of law and decided the quantum appeal. The counsel also submitted that the revenue did not file a stay petition before the High court to stay the operation of the order passed by the Tribunal.
The two-member bench comprising Dr. BRR Kumar (Vice President) and T. R. Senthil Kumar (Judicial Member) observed that the CIT(A) had rightly followed the Tribunal’s detailed findings in the quantum appeal. The tribunal observed that the CIT(A) rightly highlighted the several deletions made by the tribunal.
The tribunal highlighted the deletions made by the ITAT, which included the deletion of Rs. 7.25 crore addition under Section 68 by holding the assessee was not involved in the unaccounted transactions, deletion of Rs. 55.63 lakh loss disallowance on valuation grounds and partial deletion of Rs. 1.03 crore loan addition, with remand of Rs. 52 lakh for fresh adjudication based on new documents submitted.
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The tribunal accepted the submissions made by the assessee counsel that there was no stay application filed by the revenue before Gujarat High Court in order to stay the operation of tribunal’s order.
The tribunal held that there was no infirmity in the order of CIT(A). The Tribunal upheld the deletion of the penalty. The appeal filed by the Revenue was dismissed as devoid of merits.
To Read the full text of the Order CLICK HERE
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