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2018 (9) TMI 472 - AT - Income TaxPenalty u/s 271(1)(c) - enhancement u/s 40(a)(ia) - Held that:- It is undisputed that in both the years under consideration the quantum addition on account of enhancement by the Ld. CIT (A) with respect to disallowance u/s 40 (a)(ia) has been deleted by the Tribunal [2018 (8) TMI 53 - ITAT DELHI] and, therefore, since the impugned quantum additions have been deleted by the ITAT, the penalties u/s 271(1)(c) imposed on such enhancements also do not survive. Accordingly, the penalties with respect to enhancement u/s 40(a)(ia) in both the years under consideration stand deleted and the grounds raised by the assessee in this regard stand allowed. For enhancement on account of Advertisement, Marketing and Promotion expenses, it is seen that the ITAT Delhi Bench has restored this issue to the file of the AO/ TPO for both the years under consideration for the purpose of readjudicating the issue in light of the order of the Special Bench of the Tribunal in assessee’s own case for assessment year 2007-08. Although, AR has argued vehemently for deleting the penalties on the ground that the very basis of levy of penalties has been modified by the order we are of the considered opinion that interest of justice would be served if the penalties for both the years on the quantum enhancement pertaining to Advertising, Marketing and Promotion expenses is also restored to the file of the AO/TPO. It is directed accordingly. Thus, the grounds raised in this regard are allowed for statistical purposes.
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