M/S. SPYKAR LIFESTYLES PVT LTD ,MUMBAI vs. DCIT CIRCLE 13(2)(2), MUMBAI

The present appeal preferred by the Assessee is directed against the Order, dated 20/12/2025, passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the ‘CIT(A)’] whereby Learned CIT(A) had dismissed the appeal against the Penalty Order, dated 18/09/2015, passed under Section 271(1)(c) of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’], for the Assessment Year 2012-2013. 2. The Assessee has raised following grounds of appeal:

We have heard both the sides and have perused the material on record.

It emerges that this is second round of litigation. In the first round the Assessee had challenged the Assessment Order, dated 31/03/2015 passed by the Assessing Officer under Section 143(3) of the Act for the Assessment Year 2012-2013 in appeal before the Learned Commissioner (Appeals) – 14, Mumbai [for short ‘CIT(A)-14’]. Vide Order, dated 27/09/2016, the CIT(A)-14 had dismissed the appeal preferred by the Assessee as being barred by limitation. The Assessee had preferred ITA No.7000/Mum/2016 challenging the aforesaid order before the Tribunal. Vide Common Order, dated 07/02/2018, the Tribunal was pleased to set-aside the aforesaid Order, dated 27/09/2016, passed by the Learned CIT(A)-14 and restore the appeal back to the file of Learned CIT(A)-14. It is admitted position this appeal preferred by the Assessee in quantum proceedings for the Assessment Year 2012-2013 is pending before the appellate authority.

By way of the above Common Order, dated 07/02/2018, the Tribunal had also disposed off ITA No. ITA No.7001/Mum/2016, preferred by the Assessee against the Penalty Order, dated 18/09/2015 passed under Section 271(1)(c) of the Act. The Tribunal restore back the penalty appeal back to the file of Learned CIT(A)-14. While the appeal in quantum proceeding is pending adjudication, the appeal in penalty proceedings was disposed off by the Learned CIT(A) holding as under:

We note that the Learned CIT(A) has disposed off the penalty appeal without taking into consideration the Common Order, dated 07/02/2018 [ITA No.7000/Mum/2016 and ITA No.7001/Mum/2016, Assessment Year 2012-2013]. The Learned CIT(A) had failed to appreciate that the Order dated 27/09/2016 passed by the Learned CIT(A) - 14, Mumbai has been set-aside by the aforesaid Common Order, dated 07/02/2018, passed by the Tribunal and therefore, the Learned CIT(A) was require to adjudicate appeal afresh as per directions given by the Tribunal. Accordingly, the Impugned Order, dated 20/12/2015 passed by the Learned CIT(A) disposing off the penalty appeal as infructuous is set aside with the directions to adjudicate the appeal preferred by the Assessee against the Penalty Order, dated 18/09/2015, passed under Section 271(1)(c) of the Act afresh as per the directions of the Tribunal contained in Common Order, dated 07/02/2018 [ITA No.7000/Mum/2016 and ITA No.7001/Mum/2016, Assessment Year 2012-2013]. The Learned CIT(A) is also directed to take into considerations the decision of the appeal in quantum proceedings which is pending adjudication. The Assessee is directed to take necessary steps for early disposal of quantum appeal. In terms of the aforesaid, Ground No. 1 and 2 raised by the Assessee are allowed for statistical purposes without returning any findings on merit whereas all the other Grounds raised by the Assessee are dismissed as having been rendered infructuous.

In terms of the paragraph 6 above, appeal preferred by the Assessee is treated as partly allowed.

""थ"/ The Respondent. 3. आयकरआयु"/ The CIT

"धान आयकर आयु"/ Pr.CIT 5. िवभागीय "ितिनिध, आयकर अपीलीय अिधकरण, मुंबई/ DR, ITAT, Mumbai 6. गाड" फाईल / Guard file.