TMI Blog2019 (6) TMI 1257X X X X Extracts X X X X X X X X Extracts X X X X ..... charges were struck off. Accordingly, additional grounds raised by the assessee are allowed and appeal of the assessee succeeds on this ground. As we have quashed the penalty on the issue of validity of notice, other, issues in the appeal becomes academic. Accordingly, appeal of the assessee is allowed quashing penalty levied u/s 271(1)(c) - Appeal of the assessee is allowed. - ITA No.433/Del/2011 - - - Dated:- 25-6-2019 - Shri Bhavnesh Saini, Judicial Member And Shri Prashant Maharishi, Accountant Member For the Assessee : Shri Salil Kapoor, Adv For the Revenue : Smt Naina Soin Kapil, Sr. DR ORDER PER PRASHANT MAHARISHI, A. M. 1. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act amounting to ₹ 10,92,324. 4. That on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in upholding the order of the Ld. AO stating that the appellant intended to defraud taxes while claiming the amount of ₹ 44,44,002 paid as advertising, marketing and promotions contributions to Yum! Restaurants Marketing Private Limited, i.e. appellant s wholly owned subsidiary company. The Ld. CIT(A) thereby erred in upholding penalty on the appellant under Section 271(1)(c) of the Act amounting to ₹ 17,57,603. 2. During the course of hearing the assessee furnished an application for admission of additional grounds of appeals raising following grounds:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above grounds are purely legal and does not require any fresh investigation of facts. It is further mentioned that they got to the root of the matter and therefore, same may be admitted. 4. The ld DR vehemently objected to the application for admission of additional grounds and submitted that they were not raised before the lower authorities. Hence, they should not be admitted. 5. We have carefully considered the rival contentions and found that additional grounds raised by the assessee are purely legal in nature and goes to the root of the subject matter of the appeal. As the issues are raised with respect to the initiation of penalty proceedings on jurisdictional matters the additional grounds are the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... articulars of his income. In the assessment year the ld AO did not initiate any penalty proceedings with respect to accrued marketing expenditure of ₹ 2761882/-/ However, with respect to the contribution of AMP expenditure the AO initiated the penalty proceedings. 9. On appeal before the ld CIT(A) the penalty levied by the ld AO was upheld. 10. Adverting to the additional ground, the ld AR produced the notice dated 31.03.2004 issued u/s 274 read with section 271 of the Income Tax Act and submitted that none of the charges mentioned in the above notice has been struck off by the ld AO and therefore, the penalty itself becomes void ab initio and deserves to be quashed. It was further stated that on id ..... X X X X Extracts X X X X X X X X Extracts X X X X
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