RELIANCE POLYCRETE LTD.,DELHI vs. ACIT,CIRCLE-21(1), DELHI

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ITA 119/DEL/2022Status: DisposedITAT Delhi17 June 2022AY 2013-142 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that since the quantum proceedings were restored to the CIT(A), the penalty appeal should also be restored to the CIT(A) for fresh adjudication.

What were the facts?

The assessee is challenging a penalty of Rs. 5,18,34,214/-. The quantum proceedings for the assessment year were restored back to the CIT(A) by the Tribunal.

What were the issues?

Whether the penalty imposed under Section 271(1)(c) can be sustained when the quantum assessment proceedings are pending adjudication before the CIT(A).

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “G” DELHI

Before: SHRI SAKTIJIT DEY & SHRI PRADIP KUMAR KEDIA

For Appellant: Shri Santosh Pathak, Adv
For Respondent: Shri Abhishek Kumar, Sr.DR

The captioned appeal has been filed by the assessee against the order of the ld. CIT(A)-VII, New Delhi dated 27.02.2017 arising from the order passed by the Assessing Officer u/s. 271(1)(c) of the Act dated 27.09.2016 concerning Assessment Year 2013-14. The assessee is mainly aggrieved by levy of penalty of Rs.5,18,34,214/-.

2.

At the outset, ld. counsel for the assessee submitted that in the quantum proceedings, the Tribunal vide order dated 27.01.2020 in has restored the matter back to the file of the CIT(A) for adjudication on merits and consequently, the imposition of penalty is dependent upon the outcome of quantum proceedings pending before CIT(A).

3.

Learned Department Representative endorsed that the quantum proceedings has been restored back to the file of the CIT(A) for fresh adjudication.

4.

After considering the aforesaid submissions, we find that in the quantum proceedings, the Tribunal has restored the matter back to the file of the CIT(A). Consequently, the impugned appeal challenging imposition of penalty should also be restored back to the file of the CIT(A). The CIT(A) is directed to pass appellate order after taking into account the position of law and facts in the light of decision rendered in quantum proceedings. Thus, we restore the issue back to the file of the CIT(A) for fresh adjudication.

5.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 17/06/2022.

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