ASSISTANT COMMISSIONER OF INCOME TAX 8 2 1, MUMBAI vs. SHIRDI PANEL INDUSTRIES LIMITED, MUMBAI

PER PAWAN SINGH, JUDICIAL MEMBER: 1. These two appeals by the Revenue are directed against the separate orders of the learned CIT(A) dated 07.01.2026 and 08.01.2026 for Assessment Years 2012-13 and 2014-15, respectively. In both the appeals, the Revenue has assailed the validity of the orders of the learned CIT(A), wherein the appeals against the penalty levied under section 271(1)(c) was restored back/ set asideto the file of the Assessing Officer. 2. We have heard the rival submissions of both the parties and perused the material available on record. The learned Senior Departmental Representative

Shirdi Panel Industries Limited ITA Nos. 3551&3552/Mum/2026 (AY: 2012-13 & 2014-15)

(DR) for the Revenue submitted that the learned CIT(A), in the impugned orders, restored the matter to the file of the Assessing Officer, which is contrary to the statutory provisions. Under section 251(1)(b), in an appeal against a penalty order, the learned CIT(A) may confirm, cancel or vary it or either to enhance or reduce the penalty. However, the learned CIT(A) has no power to set aside back to the file of the Assessing Officer, as in case of appeal against the quantum assessment. Thus, the orders of the learned CIT(A) are beyond the scope of section 251. 3. On the other hand, the learned Authorised Representative (AR) of the assessee submitted that the assessee-company is going through the insolvency proceedings and the matter is pending before the National Company Law Tribunal (NCLT), wherein the resolution plan has already been filed before the Insolvency Professional appointed by the NCLT. The learned AR for the assessee prayed that the proceedings in both the appeals may be quashed and set aside the order giving effect. 4. In a short rejoinder, the learned Senior DR (ld. Sr. DR) for the revenue submitted that, at present, the orders passed by the learned CIT(A) are a nullity and the matters may be remanded back to the file of ld. CIT(A) with the liberty to assessee to take legal objection before ld. CIT(A). 5. We have considered the rival submissions of both the parties. We find that the Assessing Officer levied penalty under section 271(1)(c) of Rs. 4,77,583/-

Shirdi Panel Industries Limited ITA Nos. 3551&3552/Mum/2026 (AY: 2012-13 & 2014-15)

for Assessment Year 2012-13 on 31.03.2022 and a similar penalty of Rs. 6.64/- crore was levied for Assessment Year 2014-15 vide order dated 27.03.2024. On appeal before the learned CIT(A), both the matters were restored / set aside to the file of the Assessing Officer. We find that the orders passed by the learned CIT(A) in both the appeals is against the statutory provision. Therefore, both the appeals are restored back to the file of the learned CIT(A) to adjudicate the matters afresh. The assessee is given liberty to raise legal plea before the learned CIT(A). 6. In the result, both the appeals of the revenue are allowed for statistical purpose. Order was pronounced in the open Court on 28/07/2026.

/- S/- Sd/- /- Sd/- Sd/- OM PRAKASH KANT PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated:28/07/2026 Biswajit Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Mumbai; and (5) Guard file. By Order

Assistant Registrar ITAT, Mumbai