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TMI Blog2020 (8) TMI 556X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - ITA No.843 And 844/Mum/2019 - - - Dated:- 6-3-2020 - Shri G. Manjunatha, Accountant Member And Shri Ravish Sood, Judicial Member For the Assessee : Ms. Krupa R.Gandhi And Ms. Riddhi Maru, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as filed its return of income for the AY 2011- 12 on 30/09/2011, declaring total income of ₹ 6,80,98,658/-. The assessment has been completed u/s 143(3) of the I.T.Act, 1961 on 08/03/2014 and determined total income at ₹ 10,30,96,510/- after making addition of ₹ 2,96,41,408/- towards sales promotion expenses being freebies and sponsorship given to doctors and marketing personnel. Thereafter, the Ld. AO has initiated penalty proceedings u/s 271(1)(c) of the I.T.Act, 1961 and after considering relevant submissions of the assessee has levied penalty of ₹ 68 Lacs, which is equal to 100% of the tax sought to be evaded for furnishing inaccurate particulars of income. Meantime, the assesee has challenged additions made by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We have heard both the parties, perused the material available on record and gone through orders of the authorities below. We find that the ITAT, Mumbai G bench in ITA No.80/Mum/2016 ITA No.138/Mum/2016, vide order dated 02/04/2018 for AY 2011-12 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 in ITA No.1139/Mum/2016 1524/Mum/2016 vide order dated 31/05/2018 for AY 2012-13 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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