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Facts
The assessee's appeal arises from an order confirming a penalty under Section 272AAC(1) of the Act, which originated from an assessment order under Section 143(3). The assessment order was ex-parte.
Held
The Tribunal noted that the Ld.CIT(A) had already remanded the matter back to the Assessing Officer for a de novo assessment. Since the original assessment order was no longer in existence, the penalty levied was not maintainable.
Key Issues
Whether a penalty levied based on an assessment order that has been set aside and remanded for de novo assessment is maintainable.
Sections Cited
272AAC(1), 143(3)
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Income Tax Appellate Tribunal, MUMBAI BENCH “E”, MUMBAI
Before: SHRI SANDEEP GOSAIN & SHRI OM PRAKSH KANT
O R D E R
PER : SANDEEP GOSAIN, JM
This appeal filed by the assesse is arising out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereafter, Ld.CIT(A)], dated 30/03/2025 for the assessment year 2018-19.
We have heard the counsels of both the parties, perused the materials placed on record, judgements cited before me and also the order passed by the revenue authorities.
2 ITA 2810/Mum/2025 Harry’s India Pvt Ltd 3. From the records we noticed that the present appeal has been filed against the order confirming the penalty levied under section 272AAC(1) of the Act arising out of the assessment order passed under section 143(3) of the Act. It was submitted by the Ld.AR that the said order of assessment under section 143(3) of the Act was an exparte order. Therefore, Ld.CIT(A), vide his order dated 31/12/2024 has remanded the matter back to the file of the Assessing Officer for de novo assessment, which is still pending. Since the original order of assessment is no more in existence, therefore, any penalty levied which emerges out of order of assessment passed under section 143(3), is not maintainable at this stage. Therefore, considering the fact that Ld.CIT(A) has already restored the matter back to the file of the AO for de novo assessment, the present case is also restored to the file of the Assessing Officer to take appropriate decision, after passing fresh assessment order of assessment in accordance with law.
In the result, the appeal filed by the assesse is allowed for statistical purpose. Order pronounced in the open court on 24 day of July, 2025.