2026 (8) TMI 1737

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....No. 1: Ms. Nairuti Sorathiya, For Ms Maithili D Mehta (3206). For the Opponent(s) No. 1: Mr. B.S. Soparkar, for Mrs Swati Soparkar (870). ORAL ORDER (PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA) 1. Heard learned advocate Ms. Nairuti Sorathiya for learned Senior Standing Counsel Ms. Maithili Mehta for the appellant and learned advocate Mr. B.S. Soparkar for learned advocate Ms. Swati ....

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....ng Officer levied the penalty of Rs.9,02,96,630/-, which was confirmed by the Commissioner of Income Tax (Appeals). 4. The Tribunal by the impugned order passed in ITA No. 4086/Ahd/2007, deleted the penalty as the addition made by the Assessing Officer on the account of the bad debts was deleted by the Tribunal vide order dated 21.11.2008 passed in ITA No. 113/Ahd/2006. The Tribunal in the impu....

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....sessee because once quantum addition does not survive, question of penalty for concealment of income or submission of inaccurate particulars of income in respect of such addition does not arise. I did not dispute that in quantum appeal, the addition of Rs. 25,79,90,373 has been deleted by the ITAT, Ahmedabad D-Bench in assessee's case in ITA No. 113/Ahd/2006 dt. 21.11.2008 (copy placed on reco....

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....l that no penalty can be levied where the addition itself is deleted. Penalty cannot be calculated without reference to the tax assessed. As the matter of penalty is qua tax and if there is no liability to tax, no penalty can be levied. In view of the above, we allow the appeal of the assessee and cancel the penalty of Rs. 90296630/- and allow the appeal of the assessee." 5. It was pointed out ....