2018 (11) TMI 1685 - AT - Income Tax

Penalty levied u/s 271(1)(c) - MAT Computation - whether provision for diminution in value of assets is to be added back for computation of book profit u/s.115JB ? - HELD THAT - As quantum has been deleted in 2018 (4) TMI 872 - ITAT AHMEDABAD now nothing remains. Therefore, penalty imposed by the Revenue is deleted. - Decided in favour of assessee

Summary

Issues Involved:
Appeal against order of CIT(A) for AY 2003-04; Deletion of penalty under section 271(1)(c) of the Act.

Analysis:
The appeal was filed by the Revenue against the order of the ld. CIT(A) for the Assessment Year 2003-04. The main ground of appeal was the deletion of penalty amounting to ?4,84,75,000 under section 271(1)(c) of the Act. The ITAT had previously deleted the quantum in ITA No.1163/Ahd/2014, which led to the deletion of the penalty imposed by the Revenue. The ITAT considered the case record, including the investment amount in the balance sheet, provision for diminution, and relevant details from the assessment order. The assessee had followed the netting principle based on a jurisdictional high court's judgment, which remained unrebutted by the Revenue. The ITAT accepted the assessee's substantive ground, emphasizing the application of the netting principle as per legal precedents. As the ITAT had already granted relief in the quantum proceedings, the penalty imposed by the Revenue was consequently deleted. The appeal filed by the Revenue was dismissed, and the order was pronounced on November 29, 2018.