SH. RISHI SAGAR,KHANNA vs. ITO, WARD III, KHANNA

Aforesaid appeal by assessee for Assessment Year (AY) 2009-10 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 17-03-2025 in the matter of penalty levied by Ld. AO u/s 271(1)(c) for Rs.17,64,606/- vide order dated 24- 03-2014. Having heard rival submissions, the appeal is disposed-off as under. The registry has noted delay of 166 days in the appeal, the condonation of which has been sought by Ld. AR.

In the quantum assessment order, Ld. AO rejected the books of the assessee and made various additions. Consequently, impugned penalty was levied by Ld. AO vide order dated 24-03-2014. The Ld. CIT(A) confirmed the penalty vide order dated 23-02-2018. The matter reached up-to Tribunal vide ITA No.515/Chd/2018 wherein the appeal was disposed-off vide order dated 16-12-2020. The bench, considering the pendency of review petition of the assessee in quantum appeal before Hon’ble High Court, set aside the matter to Ld. AO to be adjudicated after considering the outcome of assessee’s review petition. Apparently, the appeal has been marked on the ITBA portal for disposal by Ld. CIT(A). The same run contrary to the directions of the Tribunal since the matter was set aside to Ld. AO and not to Ld. CIT(A). Finally, vide order dated 17-03-2025, this appeal has been dismissed by Ld. CIT(A) to be infructuous. Aggrieved, the assessee is in further appeal before us. The Ld. AR stated that review petition has been dismissed by Hon’ble High Court vide CM-15801-CII-2019 in / and RA-CR-130-2019 (O&M) on 26-02-2024. A copy of the same has been placed on record. 3. We find that the issue of penalty was restored back by the Tribunal to the file of Ld. AO and not to the file of Ld. CIT(A). Apparently, the appeal has erroneously been marked on the ITBA portal for disposal by Ld. CIT(A). The same run contrary to the directions of the Tribunal since the matter was set aside to Ld. AO. The Ld. CIT(A), instead of dismissing the appeal, should have restored the penalty issue to the file of Ld. AO pursuant to the directions of the 3