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Facts
The assessee filed an appeal against an order related to penalty proceedings under Section 270A for AY 2017-18. The assessee had challenged a penalty of Rs.11,30,734/- for under-reporting income.
Held
The tribunal held that since the quantum proceedings were set aside by the CIT(A) for fresh adjudication, there was no basis for levying a penalty arising from the original quantum order. Therefore, the penalty was deleted.
Key Issues
Whether a penalty under Section 270A can be sustained when the underlying assessment order has been set aside for fresh adjudication.
Sections Cited
270A, 147, 144, 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH
(Assessment Year :2017-18) Manoj Kundanmal Jain Vs. The ITO-19(2)(2), Room No.9/10, Mumbai 1st Floor, 16/20 A Padamshi Bhuvan IST Khattar Gully C P Tank, Mumbai- 400 004 PAN/GIR No.ABOPJ6024G (Appellant) .. (Respondent) Assessee by Ms. Nidhi Goradia Revenue by Shri Virabhadra Mahajan, Sr. DR Date of Hearing 15/07/2025 Date of Pronouncement 21/07/2025 आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the assessee against order dated 29/03/2025 passed by NFAC, Delhi in relation to the penalty proceedings u/s.270A for the A.Y.2017-18.
The assessee has challenged levy of penalty of Rs.11,30,734/- on account of under reporting of income. It had been submitted that in the quantum proceedings, the ld. CIT(A) has set aside the entire matter to the file of the ld. AO for Manoj Kundanmal Jain deciding afresh. The relevant finding of the ld. CIT(A) is as under:- 5. The impugned assessment order was passed ex-parte u/s 147 r.w.s. 144 read with section 144B of the income tax Act as the appellant did not respond to the notices issued by the AO during the assessment proceedings. In view of the facts of the case, in my considered opinion, the interests of justice will be well-served, if the appellant is given an opportunity to present his case before the Assessing Officer. Accordingly, the impugned order of the AO Is set aside and the matter is restored to the file of the Assessing Officer for decision afresh. The Assessing Officer shall give proper opportunity to the appellant to present his case.
In the result, the appeal of the appellant is treated as allowed for statistical purposes.
Thus, when entire assessment order has been set aside to be decided afresh then, there is no question of any levy of penalty u/s.270A arising from the said quantum order. Accordingly, the penalty levied by the ld. AO and sustained by the ld. CIT(A) is deleted.
In the result, appeal of the assessee is allowed.
Order pronounced on 21st July, 2025.