,   ,  

       IN THE INCOME TAX APPELLATE TRIBUNAL "D" BENCH, MUMBAI

             BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER

                 AND SHRI AMARJIT SINGH, JUDICIAL MEMBER

                / I.TA No. 3018/Mum/2014
                 (   / Assessment Year:2006-07
The ACIT-19(2),                 / Mrs. Reema Anup Karnani,
Piramal Chambers,                   301, Shalaka Bldg.,
                                Vs.
Lalbaug, Parel,                     Plot No. 32, Juhu Road,
Mumbai-400 012                      Santacruz (W),
                                    Mumbai-400 054

     . /   . / PAN/GIR No. :AABPK 4495J
   ( /Appellant)                ..           (    / Respondent)
          / Appellant by:                 Shri Sanjeev Kashyap
             /Respondent by:               Shri Mukesh Advani

                / Date of Hearing
                                                   :26.10.2015
               /Date of Pronouncement :26.10.2015


                              / O R D E R
  PER N.K. BILLAIYA, AM:

         This appeal by the Revenue is preferred against the order of
  the Ld. CIT(A)-31, Mumbai dated 17.2.2014 pertaining to assessment
  year 2006-07.

  2.     The sole grievance of the Revenue is that the Ld. CIT(A) erred
  in deleting the penalty u/s. 271(1)(c) of the Act amounting to Rs.
  11,09,210/-.
                                   2                   ITA. No. 3018/M/2014







3.    The roots for the levy of penalty lie in the assessment order
dated 17.12.2008 made u/s. 143(3) of the Act. While scrutinizing the
return of income for the year under consideration, the Assessing
Officer found that the assessee has purchased a property from one
Mr. Samir Bhojwani on 10.5.2005 and the assessee was entitled to
the Leave & License rent of Rs. 44 lakhs. Since the assessee has not
shown any rental income from the said party, the AO made an
addition of Rs. 44 lakhs to the returned income of the assessee.

4.    This action of the AO was not only confirmed by the Ld. CIT(A)
but the CIT(A) further made an addition of Rs. 1,32,000/- on account
of notional interest earned on deposits received on account of Leave
& License Agreement. These additions were challenged before the
Tribunal by the assessee and the Tribunal vide order dated
21.10.2015 in ITA No. 253/M/2011 has deleted the addition of Rs. 44
lakhs and also the addition of Rs. 1,32,000/-.

5.    Sublato fundaments credit Opus meaning ­ in the case the
foundation is removed, super structure falls. The foundation i.e.
quantum addition have been deleted by the Tribunal, the super
structure i.e. penalty falls.






6.    In the result, the appeal filed by the Revenue is dismissed.

      Order pronounced in the open court at the time of hearing on
26th October, 2015
              Sd/-                                   Sd/-
      (AMARJIT SINGH )                       (N.K. BILLAIYA)
    /JUDICIAL MEMBER    / ACCOUNTANT MEMBER
  Mumbai;  Dated : 26th October, 2015

. ../ Rj , Sr. PS
                           3           ITA. No. 3018/M/2014


        /Copy of the Order forwarded to :
1.  / The Appellant
2.     / The Respondent.
3.     () / The CIT(A)-
4.      / CIT
5.       ,     , 
     / DR, ITAT, Mumbai
6.     / Guard file.
                                    / BY ORDER,
                   //True Copy//
                         / 
                     (Dy./Asstt. Registrar)
                     ,    / ITAT, Mumbai