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2023 (9) TMI 738 - AT - Income TaxPenalty levied u/s. 271(1)(c) - addition on account of Deemed Dividend u/s 2(22)(e) - CIT(A) deleted penalty levy - HELD THAT:- The fact that the very basis for imposition of penalty, does not survive, there can be no question of any imposition of penalty thereon. When the quantum addition does not survive, the penalty levied u/s 271(1)(c) on the corresponding quantum addition also cannot survive. We take support from judicial precedent in the case of ‘K.C. Builders [2004 (1) TMI 7 - SUPREME COURT] in which as held that where the additions made in the Assessment Order, on the basis of which penalty for concealment was levied, are deleted, there remains no basis at all for levying the penalty for concealment, and therefore, in such a case, no such penalty can survive and the same is liable to be cancelled. Appeal filed by Revenue against the impugned order whereby the penalty is deleted on merits, do not stand any more
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