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2020 (8) TMI 556 - AT - Income TaxPenalty u/s. 271(1 )(c) - disallowance of promotion expenses - expenses prohibited by the Medical Council Act - HELD THAT:- We find that the ITAT, Mumbai ‘G’ bench in [2018 (4) TMI 1813 - ITAT MUMBAI] has deleted additions made by the Ld. AO towards sales promotion expense, in light of the circular issued by the CBDT, on the basis of MCI regulations. We further noted that ITAT, Mumbai ‘G’ bench [2018 (5) TMI 2013 - ITAT MUMBAI]has also deleted additions made towards sales promotion expenses being freebies given to doctors on the basis of circular No.05/2012 dated 01/08/2012 issued by the CBDT. Once, addition on which penalty levied u/s 271(1)(c) has been finally deleted by the appellate authorities, then there is nothing survives to levy penalty u/s 271(1)(c) - CIT(A) after considering relevant facts and also, by taken note of facts that the Tribunal has deleted additions made by the Ld. AO, which triggered levy of penalty of u/s 271(1)(c) has deleted penalty levied on such additions, We, therefore are of the considered view that the Ld.CIT(A) was right in deleting penalty levied by the Ld. AO u/s 271(1)(c) - Decided against revenue.
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