SPL'S LTD,NEW DELHI vs. DCIT, CIRCLE-9(1), NEW DELHI

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ITA 5417/DEL/2019Status: DisposedITAT Delhi01 February 2021AY 2004-054 pages
AI SummaryRemanded

What did the Tribunal hold?

The ITAT held that the CIT(A) should not have decided the penalty appeal before deciding the quantum appeal, as the quantum appeal was restored to the CIT(A) by the Tribunal. The order of the CIT(A) was set aside.

What were the facts?

The Assessing Officer made an addition of Rs. 9,40,000/- on account of unexplained share application money/share capital and levied penalty under section 271(1)(c). The assessee's appeal against the quantum addition was set aside by the ITAT and restored to the CIT(A) for fresh decision.

What were the issues?

Whether the penalty appeal can be decided before the quantum appeal is decided, especially when the quantum appeal has been restored to the CIT(A) by the Tribunal.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “SMC-1” : DELHI

Before: SHRI BHAVNESH SAINI & SHRI B.R.R. KUMAR

Hearing: 19.01.2021Pronounced: 01.02.2021

This appeal by Assessee has been directed against the Order of the Ld. CIT(A)-31, New Delhi, Dated 26.04.2019, for the A.Y. 2004-2005, challenging the levy of penalty under section 271(1)(c) of the Income Tax Act, 1961.

2 ITA.No.5417/Del./2019 M/s.SPL’s Limited, New Delhi. 2. We have heard the Learned Representative of both the parties through video conferencing and perused the material available on record.

3.

Briefly the facts of the case are that assessment under section 147/143(3) was completed on 30.11.2011 after making an addition of Rs.9,40,000/- on account of unexplained share application money/share capital. The A.O. levied the penalty under section 271(l)(c) of the I.T. Act, 1961 and the Ld. CIT(A) dismissed the appeal of assessee.

4.

Learned Counsel for the Assessee pointed-out that assessee filed an appeal against the quantum addition before ITAT, Delhi Bench vide ITA.No.6483/Del./2012 for assessment year under appeal which have been decided vide Order Dated 07.07.2017 and Order of the Ld. CIT(A) have been set aside and the matter in issue have been restored to the file of Ld. CIT(A) for deciding the appeal of assessee on quantum afresh. He has submitted that despite this fact was submitted before Ld. CIT(A), the Ld. CIT(A) proceeded to decide the penalty appeal and dismissed the same. He has 3 ITA.No.5417/Del./2019 M/s.SPL’s Limited, New Delhi. submitted that still the quantum appeal is pending before the Ld. CIT(A) as is restored by the Tribunal, therefore, before deciding the quantum appeal, the Ld. CIT(A) should not have decided the appeal of assessee of penalty.

5.

In view of the above facts, it is clear that the Ld. CIT(A) did not follow the Order of the Tribunal. Since the quantum appeal is still pending before the Ld. CIT(A) as per contention of the Learned Counsel for the Assessee, therefore, there was no justification to the Ld. CIT(A) to have decide the penalty appeal early. In view of the above, we set aside the Order of the Ld. CIT(A) and restore the penalty appeal to his file with a direction to re-decide the penalty appeal after deciding the quantum appeal. The Ld. CIT(A) shall give reasonable, sufficient opportunity of being heard to the assessee. Accordingly, appeal of the Assessee is allowed for statistical purposes.

6.

In the result, appeal of the Assessee allowed for statistical purposes.

4 ITA.No.5417/Del./2019 M/s.SPL’s Limited, New Delhi. Order pronounced in the open Court.

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