ANIL JINDAL,FARIDABAD vs. DCIT CENTRAL CIRCLE - II, DELHI

Brief facts of the case are that the assessee is an individual and filed its return of income on 23.07.2013 declaring an income of Rs.1,63,09,510/-. Based on a search and seizure operation on 09.05.2012, assessment u/s. 153B r.w.s. 143(3) of the Income-tax Act, 1961 (“the Act”) was completed at an income of Rs.2,23,14,890/-. In the assessment proceedings, learned Assessing Officer made addition of Rs.56,55,380/- on account of unexplained jewellery and Rs.3,50,000/- on account of unexplained cash found during the course of search operation, which stood confirmed by the ld. CIT(A) in appeal filed by the assessee. Thereafter, the Assessing Officer initiated penalty proceedings u/s. 271AAA of the Act and finding the replies of assessee not satisfactory, imposed a penalty of Rs.6,00,538/- on the basis of aforesaid additions sustained by the ld. CIT(A) in the quantum appeal. Aggrieved by the penalty order, assessee filed appeal before the ld. CIT(A), which stood dismissed by the impugned order.

Assessee, therefore, preferred this appeal. Learned AR of the assessee, inter alia, submitted that the assessee came up in appeal No. 838/Del/2017 before the Tribunal challenging the sustenance of additions, on the basis of which the impugned penalty is imposed and the Tribunal by order dated 08.04.2021 remanded the matter back to the file of learned Assessing Officer for passing a fresh assessment order after giving opportunity to the assessee for placing supporting evidences. It is, therefore, submitted that the impugned penalty cannot be sustained.

Learned DR, on the other hand, relied on the orders of the authorities below and submits that once the assessee failed to explain the jewellery and cash found during the search operation, the impugned order of ld. CIT(A) does not call for any interference.

We have gone through the record in the light of the submissions made on either side. It is not in dispute that the issues pertaining to additions on the basis of which impugned penalty has been imposed, have been remanded back by the Tribunal in quantum appeal to the file of Assessing Officer for fresh consideration. In such circumstances, we deem it appropriate in the interest of justice to remand the present appeal pertaining to penalty, to the file of ld. Assessing Officer for fresh decision on the penalty proceedings after considering the outcome of fresh assessment. Needless to say, assessee shall be given reasonable opportunity of being heard. Accordingly, the appeal of the assessee is allowed for statistical purposes.