W G STEEL INDUSTRIES ,MUMBAI vs. INCOME TAX OFFICER WARD 28(3)(5), NAVI MUMBAI

Both appeals were filed with a delay of 375 days. The assessee has explained the cause of delay by submitting a duly sworn affidavit dated 28/04/2025. Since the Ld. DR has not raised any objection to the condonation of delay, we hereby condone the delay and admit the appeals for adjudication.

We heard the rival submissions and perused the material available on record. Both appeals are directed against the orders passed by the Ld. CIT(A), wherein the penalty imposed under section 271(1)(c) of the Act was upheld — amounting to Rs. 2,44,480/- for A.Y. 2010-11 and Rs. 6,23,420/- for A.Y. 2011-12, being 100% of the tax allegedly sought to be evaded. During the course of the hearing, the Ld. AR submitted that for both assessment years, the quantum appeals had been duly contested before the ITAT, Mumbai Bench. The Coordinate Bench, vide orders dated 28/04/2025 in for A.Y. 2010-11 and for A.Y. 2011-12, set aside the quantum assessments to the file of the Ld. CIT(A) for fresh adjudication after affording proper opportunity of hearing to the assessee. In view of the above, and considering the submissions of the Ld. AR, we deem it appropriate to remand the present appeals, pertaining to penalty under section 271(1)(c) of the Act, to the file of the Ld. CIT(A) for de novo adjudication, to be decided afresh in light of the outcome of the quantum proceedings. The Ld. DR has not raised any objection to the prayer of the Ld. AR. We make it clear that we are not expressing any opinion on the merits of the case so as not to prejudice the outcome of the proceedings.Needless to say, the assessee shall be 3 ITAs1697 & 1699/Mum/2025 W.G. Steel Industries afforded a reasonable opportunity of being heard in the remanded proceedings and, in turn, is expected to extend full cooperation for expeditious disposal of the appeal.