2016 (5) TMI 1615 - AT - Income Tax

Disallowance u/s 14A - in the quantum appeal the Tribunal has deleted the said disallowance which was made by the AO over and above what the assessee has offered the disallowance u/s14A - HELD THAT - In view of the aforesaid facts that in the quantum proceedings the Tribunal vide order 2014 (1) TMI 709 - ITAT MUMBAI has deleted the disallowance made by the AO u/s 14A over and above what was suo moto disallowed by the assessee in its return of income the penalty levied on such disallowance have no legs to stand. CIT(A) has deleted the penalty after following Tribunal order in the quantum proceedings. Accordingly ground raised by the revenue is dismissed.

Summary

The Appellate Tribunal ITAT Mumbai dismissed the revenue's appeal against a penalty of Rs.36,79,893 imposed for disallowance under section 14A. The Tribunal had previously deleted the disallowance made by the AO, and the penalty was overturned accordingly. The appeal of the revenue was dismissed on 25th May, 2016.