What did the Tribunal hold?

The Tribunal held that since the quantum appeal was remanded, the penalty appeal, being an after-effect, should also be remanded back to the AO. The AO is to pass an appropriate order based on the outcome of the assessment proceedings.

The assessee filed an appeal against the order of the CIT(A). The assessee's quantum appeal for the same assessment year had already been allowed and remanded back to the AO by the Tribunal.

What were the issues?

Whether the penalty appeal should be remanded back to the AO when the related quantum appeal has been remanded.

Housing Board Haryana, Panchkula vs DCIT | ITAT Chandigarh 2026

Income Tax Appellate Tribunal, DIVISION BENCH, ‘A’ CHANDIGARH

Before: SHRI LALIET KUMAR & SHRI MANOJ KUMAR AGGARWAL

For Appellant: Shri Nalin Nohria, CA & Shri B.K.Nohria, CA

For Respondent: Shri Prabodh Sharma, Addl. CIT, Sr.DR

Hearing: 25.06.2026Pronounced: 07.07.2026

PER LALIET KUMAR, JM

The assessee is in appeal before the Tribunal against the order of the Commissioner of Income Tax (Appeals) NFAC [in short ‘the CIT (A)’] dated 28.11.2025 passed for assessment year 2020-

21.2.

It was submitted by the ld. counsel for the assessee that quantum appeal filed by the assessee has been allowed by the Tribunal vide the impugned order dated 05.06.2026 and therefore, A.Y.2020-21 2

it was submitted that the penalty appeal which is an after-effect

of the quantum appeal is also required to be remanded back to the file of the ld. AO. The ld. DR has not disposed the above remanding

back.

Having considered the rival contentions of the parties, we are of the considered opinion that the quantum appeal has been remanded back bearing No. 1838, 1839, 1841 and 1843/CHD/2025 to the file of the AO, therefore, the present appeal

which is the penalty appeal is also remanded back to the file of the AO with direction to pass appropriate order depending upon the outcome of the assessment proceedings.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced on 07.07.2026. (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER “Poonam” A.Y.2020-21 3

आदेश क" "ितिलिप अ"ेिषत/ Copy of the order forwarded to : अपीलाथ"/ The Appellant

""यथ"/ The Respondent 2. आयकर आयु"/ CIT 3. िवभागीय "ितिनिध, आयकर अपीलीय आिधकरण, च"डीगढ़/ DR, ITAT, CHANDIGARH 4. गाड" फाईल/ Guard File 5. सहायक पंजीकार/

HOUSING BOARD HARYANA,PANCHKULA vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE PANCHKULA, PANCHKULA

What did the Tribunal hold?

What were the facts?

What were the issues?

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