Penalty Cannot Survive Without Quantum Addition – ITAT Upholds Deletion u/s 271(1)(c)

DCIT Vs Ravindar Shankar Sawant (ITAT Mumbai) Mumbai ITAT upheld deletion of penalty u/s 271(1)(c), holding that once the underlying quantum additions are deleted, penalty automatically fails. The Tribunal noted: Penalty of ₹61.06 lakh was levied based on additions u/s 68 and 69C The ITAT had already deleted the quantum additions in earlier proceedings Revenue also conceded this factual position The ITAT held: Penalty is dependent on quantum addition Once the foundation (addition) is removed, penalty cannot stand Penalty becomes infructuous and non-est Accordingly: Deletion of penalty b...