CHANDER YADAV,NOIDA vs. ITO WARD-2(1), NOIDA

Levy of penalty of Rs.4,97,500/- by the Assessing Officer u/s 271(1)(c) of the Income Tax Act, 1961 (hereinafter ‘the Act’) and upheld by the Ld. CIT(A) is the only issue raised by the assessee in the grounds of appeal.

The Ld. Counsel for the assessee, at the time of hearing, filed a copy of the order of the Tribunal vide order dated 31.07.2019 for AY 2-11-12 and submitted that the quantum appal filed by the assessee has been restored to the file of the Assessing Officer for fresh adjudication. Therefore, the penalty does not survive and accordingly the same should be deleted.

The Ld. DR, on the other hand, fairly conceded that the Tribunal has set-aside the issue to the file of the Assessing Officer in the quantum appeal.

I have considered the rival arguments made by both the sides. Since, the quantum appeal has already been set-aside by the Tribunal to the file of the Assessing Officer for fresh adjudication, therefore, the present penalty does not survive and accordingly the same is directed to be deleted. However, the Assessing Officer is at liberty to initiate fresh penalty proceedings after completion of the assessment in the set-aside proceedings as per law. I hold and direct accordingly. The ground raised by the assessee is accordingly allowed.

In the result, the appeal filed by the assessee is allowed.