Penalty deleted on following the order of coordinate bench in the assessee’s own previous case

Penalty deleted on following the order of coordinate bench in the assessee’s own previous case

The assessee is a company engaged in the business of import of rough diamonds, manufacturing the same into the polished diamonds, and finally exporting the said polished Diamond. For the assessment year, 2013–14 it entered into several international transactions, assessing officer held that it is a gross violation of provisions of Section 271G of the Act and accordingly a penalty of Rs. 69,584,950 which is 2% of the international transaction was levied. Appeal before CIT(A): Assessee, aggrieved with the order preferred an appeal before the learned CIT(A) who deleted the penalty. Appeal before ITAT: Thus, the ld. AO aggrieved by the order preferred the appeal before the tribunal. The tribunal held that the ld. CIT(A) had deleted the penalty by following the order of the coordinate bench in the assessee’s own case for the assessment year 2011–12 wherein on identical facts and circumstances are identical penalty levied u/s 271G was deleted so no fault can be found with such an order. Also, there are a plethora of judicial precedents available on identical facts and circumstances where such a penalty had been cancelled looking to the particular scenario in the diamond trade. Therefore, the tribunal confirmed the order of the learned CIT(A) in deleting the penalty u/s 271G of the Act of Rs. 69,584,950. Hence, all the grounds of appeal of the learned AO were dismissed. To Read Judgment Download PDF Given Below: