IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAKESH MISHRA, ACCOUNTANT MEMBER आयकर अपील सं/

( Assessment Year : 2014-2015)

निर्धारण वर् ा /

DCIT, Circle-49(1), Kolkata Vs Partha Chakraborti, Uttarapan Building, Block-DS-

II & III, 2^nd Floor, Ultadanga, K olkata-700054 PAN No. :ADQPC 5578 E ..

( Appellant) ( Respondent अपीलधर्थी / प्रत्यर्थी /

/Assessee by : Shri Subhasis Ghosh & Shri S.

निर्धाररती की ओर से

Bhattacharjee, Ars /Revenue by : Shri Susanta Shah, Sr. DR रधजस्व की ओर से : 01/05/2025 Date of Hearing सुनवाई की तारीख /

: 01/05/2025 Date of Pronouncement घोषणा की तारीख/

O R D E R

आदेश /

Per Bench :

This is an appeal filed by the revenue against the order dated

12.03.2024, passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi, passed in DIN & Order No.ITBA/NFAC/S/250/2023- 24/1062475105(1), for the assessment year 2014-2015, thereby confirming the penalty levied u/s.271(1)(c) of the Act.

2. Shri Subhasis Ghosh & Shri S. Bhattacharjee, ARs appeared on behalf of the assessee. Shri Susanta Shah, Sr. DR appeared on behalf of the revenue.

3. At the outset, on perusal of the appeal record, we found that the appeal of the revenue is filed belatedly by 53 days. In this regard, the revenue has filed an application dated 11.11.2024 stating sufficient reasons for condonation of delay, which in our opinion, is plausible one. Accordingly, the delay of 53 days in filing the appeal by the revenue is condoned and the appeal is admitted for hearing.

4. It was submitted by the ld Sr. DR that in the present case, the assessment came to be completed u/s.143(3) of the Act on 26.12.2016, wherein a number of additions have been made. It was the submission that the matters reached to the Tribunal and the Tribunal vide its order passed in ITA No.2585/Kol/2018, dated 06.09.2019, deleted the substantial portion of the additions. It was the submission that penalty order u/s.271(1)(c) of the Act came to be passed by the Assessing Officer on 28.03.2019 on the basis of the order of the ld. CIT(A) in quantum appeal confirming the additions made by the Assessing Officer. It was the submission that against the penalty levied u/s.271(1)(c) of the Act, the assessee had filed appeal before the ld. CIT(A). The ld. CIT(A) had taken cognizance of the order of the coordinate bench of the Tribunal in quantum appeal passed in ITA No.2585/Kol/2018, dated 06.09.2019 wherein most of the additions made by the Assessing Officer had been deleted. Consequently, the ld. CIT(A) deleted the penalty levied u/s.271(1)(c) of the Act by holding that the additions, per se, had been deleted in the quantum proceedings. There were certain additions which had been sustained by the Tribunal in respect of the donations and subscriptions, entertainment expenses, interest on refund, disallowances u/s.40(a)(ia) of the Act and partly on bogus expenditure disallowance u/s.40A(3) of the Act. The ld. CIT(A) had deleted the penalty in its entirety. It was the submission that the quantum order of the Tribunal admittedly has been upheld by the Hon’ble Jurisdictional High Court of Calcutta but the revenue has preferred appeal before the Hon’ble Supreme Court vide an SLP. It was the submission that the order of the ld. CIT(A) deleting the penalty levied u/s.271(1)(c) of the Act, is liable to be reversed.

5. In reply, ld. AR drew our attention to the affidavit in opposition filed by the assessee. It was the submission that the main addition being in respect of the transactions with M/s Chakra Infrastructure Ltd. and other bogus loans from Disha Productions and Medial Pvt. Ltd. have been deleted by the Tribunal vide quantum order. Similarly, additions in regard to allegation of cash payment for disallowance of the business expenditure had been partly allowed by the Tribunal. It was the submission that the revenue has not provided any information regarding SLP filed by the revenue before the Hon’ble Supreme Court. It was the submission th