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2017 (6) TMI 1 - ITAT MUMBAIPenalty imposed u/s 271(1)(c) - Held that:- On quantum addition, quashed the notices issued u/s 153/153C of the Act were held to be invalid, resultantly the assessment orders passed u/s 143(3) r.w.s 153C dated 29/12/2008 were cancelled. Identically, for Assessment Year 2001-02 and 2003-04 in the case of assessee itself, the Tribunal deleted the penalty. In view of this factual matrix, we are of the view that penalty imposed u/s 271(1)(c) will not survive. Our view find support from the decision in K.C. Builders vs ACIT (2004 (1) TMI 7 - SUPREME Court) and the ratio laid down in CIT vs S.P. Viz (1988 (10) TMI 24 - PATNA High Court). Even otherwise, when the quantum addition is deleted, there remains no basis at all for levying the penalty for concealment or furnishing inaccurate particulars. The penalty cannot stand on its legs when addition on the basis of which the penalty was imposed remains no more in existence, thus, the appeal of the assessee is allowed and the ld. Assessing Officer is directed to delete the penalty. - Decided in favour of assessee.
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