When Quantum Dies, Penalty Dies – HC Appeal Without Stay Cannot Save Penalty

Lionbridge Technologies LLP Vs ACIT (ITAT Mumbai)

In revenue’s appeal u/s 271(1)(c), AO had levied penalty of Rs.6.92 crore after completing reassessment u/s 143(3) r.w.s.147 determining income at Rs.20.64 crore. Assessee succeeded before Tribunal in quantum proceedings in ITA No.610/Mum/2018 (order dated 27.05.2020), whereby entire addition was deleted & demand stood quashed.

CIT(A), relying on this binding Tribunal decision, deleted penalty since no addition survived. Revenue argued that quantum order has been challenged before Hon’ble Bombay HC & the penalty a

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