We have heard Mr. M.R. Bhatt, learned Senior Standing Counsel appearing for the Income-tax Department. This appeal has been filed challenging the order dated 31.5.2010 passed by the Income Tax Appellate Tribunal by which the Tribunal has dismissed the appeal filed by the revenue by making the following observations :-
“We have considered that rival submissions and perused the material on record. In our considered view, there is no interference is called for in the learned C.I.T. (A). It is because the subject matter of penalty was the addition on account of bad debts which have been totally deleted by the Tribunal in the order of even date. In other words, entire claim of the assessee has been considered as business loss. Once the addition does not survive, no penalty can be levied as held in Addl. CIT v. Badriprasad Kashiprasad (1993) 200 ITR 206 (All.), (2) ACIT v.
VIP Industries (2009) 122 TTJ – 289 (Mum); (3) CIT v. Mohd Bux Sokat Ali 265 ITR – 326 (Raj); (4) CIT v. Bengal Jute Mills Co. Ltd., 174 ITR 402 (Cal.) and (5) CIT v. Shishpal 255 ITR 187 (Raj.) as the entire deduction is deleted, there is no case for sustaining any penalty.”
Since the additions made against the assessee has been deleted by the Tribunal, therefore, there is no question of levying any penalty from the assessee. For the aforesaid reasons, we do not find any merit in this appeal nor any question of law, much less any substantial question of law arises in this appeal. This tax appeal is accordingly summarily dismissed.
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[V. M. SAHAI, J.] Sd/-
[N. V. ANJARIA, J.] Savariya