In the case of ICICI Bank confirmation was provided by the Income Tax Appellate Tribunal (ITAT), Mumbai Bench about the deletion of penalty against the ICICI Bank.
ICICI Bank was the assessee in a case and was engaged in the business of share and stockbroking that also included of depository operations and proprietary trading in shares and securities.
The revenue filed an appeal against the order of CIT(A) on the grounds that the CIT(A) erred in deleting the penalty levied under section 271(1)(c) on the dis-allowance of depreciation on leased assets; dis-allowance of depreciation on sale and leaseback assets; dis-allowance of deduction under section 80M; premium on redemption of debentures; expenditure for an increase in share capital; dis-allowance of expenses made under section 35D.
It was contested by the appellant that most of the disallowances, which determined the subject matter of levy of penalty, either was already deleted by the Tribunal or was restored back to lower authorities for fresh adjudication and hence, the penalty would not be even otherwise sustainable in law.
Mahavir Singh is the Vice President of ITAT who headed the two-member bench of Tribunal and saw that the issue of disallowance of depreciation on leased assets has already been set aside by the coordinate bench to the file of AO for re-examination. And confirmed that the deletion of penalty held that since the addition on the basis of which the penalty was levied does not survive, the penalty would not be sustainable.
The tribunal while deleting the penalty sustained the order of the coordinate bench of the Tribunal which had already deleted the penalty in respect of dis-allowance of depreciation on sale and leaseback assets, dis-allowance of depreciation on sale and leaseback assets; dis-allowance of deduction under section 80M; premium on redemption of debentures; expenditure for an increase in share capital; dis-allowance of expenses made under section 35D.
With Warm Regards,
CL Bureau.
