Tribunal upholds penalty deletion for AY 2009-10, citing annulled quantum additions. Revenue's appeal dismissed.

The Tribunal upheld the deletion of the penalty under section 271(1)(c) for AY 2009-10, as the quantum additions leading to the penalty imposition were previously annulled by a separate Tribunal order. The revenue's appeal against the CIT(A)'s decision was dismissed due to the lack of new evidence challenging the Tribunal's ruling. Despite attempts to justify the penalty imposition, the Tribunal emphasized the uncontroverted fact of the annulled quantum addition, leading to the maintenance of the deletion of the penalty.

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Issues: Appeal against deletion of penalty u/s 271(1)(c) for AY 2009-10.

Analysis:
1. The appeal by the revenue contested the deletion of penalty u/s 271(1)(c) for Rs. 30.82 Lacs imposed by the Assessing Officer, which was upheld by the CIT(A). The assessee, a resident corporate assessee, faced quantum addition on account of deemed dividend u/s 2(22)(e) for Rs. 90.70 Lacs during the assessment for AY 2009-10.

2. Penalty proceedings were initiated against the quantum addition, resulting in the imposition of a penalty of Rs. 30.82 Lacs on the assessee. However, the penalty was successfully challenged before the CIT(A) on the grounds that the quantum additions, leading to the penalty imposition, were already deleted by the Tribunal in a separate order dated 22/05/2015.

3. The Tribunal upheld the deletion of the penalty, emphasizing that since the quantum additions were already set aside by the Tribunal, there was no basis for the penalty imposition. The revenue's appeal against the CIT(A)'s decision was dismissed, as no new evidence was presented to challenge the Tribunal's ruling on the quantum additions.

4. Despite the Departmental Representative justifying the Assessing Officer's decision to impose the penalty, the Tribunal highlighted that the crucial fact remained uncontroverted - the quantum addition had been annulled by the Tribunal's previous order. The absence of any new legal developments overturning the Tribunal's decision further solidified the rationale for upholding the deletion of the penalty.

5. Ultimately, the Tribunal dismissed the revenue's appeal, maintaining the CIT(A)'s decision to delete the penalty under section 271(1)(c) for AY 2009-10. The order was pronounced on 05th February 2019, concluding the legal proceedings regarding the penalty imposition and subsequent deletion.

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