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2019 (3) TMI 1256 - ITAT MUMBAIPenalty levied u/s 271(1)(c) - claim of deduction u/s.54 - Tribunal while deciding quantum additions had granted relief to the assessee based on facts and circumstances of the case held that the gains arising from sale of property were long term capital gains and the assessee is entitled for deduction u/s 54 - HELD THAT:- The quantum additions have been decided in favour of the assessee by tribunal [2016 (8) TMI 60 - ITAT MUMBAI] wherein gains arising on sale of property were held to be long term capital gains chargeable to tax in AY 2012-13 and not in AY 2011-12 and tribunal further held that the assessee is entitled for deduction u/s 54 of the 1961 Act meaning thereby adverse findings of the AO in quantum are reversed by tribunal. Since, the tribunal has held that gains earned by the assessee on sale of property are long term capital gains chargeable to tax for the AY 2012-13 and further that the assessee is entitled for deduction u/s 54 of the 1961 Act, the whole edifice on which penalty u/s 271(1)(c) was levied by the AO goes. The said order of the tribunal has attained finality as appeal filed against the said order before Hon‟ble Bombay High Court has been dismissed as not pressed owing to low tax effect, consequently penalty levied by the AO u/s 271(1)(c) cannot stand. - decided against revenue
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