Case Law Details
DCIT Vs Knight Riders Sports Pvt Ltd (ITAT Mumbai)
This article discusses the legal case of DCIT Vs Knight Riders Sports Pvt Ltd, which was brought before the ITAT Mumbai. The case revolves around the penalty imposed on the assessee for inaccurate particulars, based on additions made in the assessment order. However, the co-ordinate bench deleted some of these additions in the quantum appeal, leading to questions about the sustainability of the penalty.
The court noticed that the co-ordinate bench had deleted the quantum addition regarding Franchise Fees and remitted other issues for reconsideration. The Assessing Officer also deleted a major part of the disallowances during the OGE process. Subsequently, the CIT(A) considered these aspects and canceled the penalty levied under section 271(1)(c) of the Act, emphasizing that no basis remained for the penalty when the additions were deleted.
The article further explores the court’s stance on the constitution of a Special Bench and its binding nature in light of the decision of the co-ordinate bench in the quantum appeal. The analysis delves into the rationale behind the court’s decision, taking into account the facts of the case.
Conclusion: Based on the analysis, it was found that the penalty imposed on the assessee could not survive when the additions made in the assessment order were deleted in the quantum appeal. Consequently, the penalty was canceled, and the decision of the CIT(A) was upheld. The ruling sets a precedent for similar cases and highlights the importance of considering quantum appeal outcomes when levying penalties for furnishing inaccurate particulars.
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