HOTEL CHANKAYA PVT. LTD.,PATNA vs. DCIT, CIRCLE-2, PATNA

In the instant stay application was filed by the assessee against the penalty order passed u/s 271D of the Income-tax Act, 1961 (the Act) by the Addl. Commissioner of Income-tax, Range-2, Patna, vide order dated 19.7.2019 and 24.01.2022 for A.Y. 2011-12 and 2012-13, respectively. The impugned penalty order was challenged by the assessee before the ld. National Faceless Appeal Centre, Delhi [in brevity ‘the learned CIT (A)’], order passed under Section 250 of the Income-tax Act, 1961 (in brevity, ‘the Act’) for A.Ys. 2011-12 and 2012-13, date of orders for both the appeals 19.09.2024.

The ld. Authorised Representative (in short the AR) proceeded to argue the application for stay before the Bench. The ld. AR first argued the merit of the case and placed that the penalty was initiated u/s 271D of the Act for contravention of Section 269SS of the Act. The penalty was levied amounting to ₹20,00,500/- and 13,00,000/- for A.Y. 2011-12 and 2012-13, respectively. The ld. AR further stated that the appeal order was passed ex-parte and assessee was unable to comply before the ld. CIT (A) during the appeal hearing. He further stated that the assessee is prayed to restore the matter back to the file of the ld. CIT (A) for further adjudication, de novo.

The ld. DR vehemently argued and had not made any objection against the prayer of the ld. AR.

In the result, the appeals of the assessee bearing & 610/PAT/2024 are allowed for statistical purpose.

On the other hand, both the stay petition bearing SA Nos. 12 &13/Pat/2024, are dismissed as infructuous.