Loading judgment…
Facts
The assessee filed an appeal against an order confirming a penalty levied under section 271(1)(c) for concealment of income. The penalty was levied ex-parte by the AO and upheld by the CIT(A) based on the assessment order.
Held
The Tribunal condoned the delay in filing the appeal. It noted that the quantum appeal, based on which the penalty was levied, had been restored to the CIT(A) by the ITAT. Therefore, the Tribunal deemed it appropriate to remit the penalty matter back to the CIT(A) for a fresh adjudication.
Key Issues
Whether the penalty matter should be restored to the CIT(A) for fresh adjudication given that the quantum appeal was restored to the CIT(A)?
Sections Cited
271(1)(c)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI JAGADISH
आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2013-14 arises out of the order of Learned Commissioner of Income Tax, Appeal, Chennai-19 [hereinafter “CIT(A)”] dated 02.08.2024 in the matter of penalty levied by the Assessing Officer [AO] u/s. 271(1)(c) of the Income-tax Act,1961 (hereinafter “the Act”) on 23.09.2021.
There is a delay of 99 days in filing the appeal by the assessee.
The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. We have considered the petition of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned.
The effective ground of appeal is against confirming the penalty levied by the A.O u/s 271(1)(c) of the Act without provided proper opportunity and dismissing the appeal.
4. The A.O has levied penalty of Rs.15,03,800/- u/s 271(1)(c) of the Act for concealment of income in ex-parte order passed on 19.01.2022. On appeal the Ld. CIT(A) upheld the penalty observing that it is evident from the assessment order and the penalty order that assessee has failed to discharge the onus vested in her regarding cash deposit added by the A.O. The Ld AR has submitted that the appeal against the assessment order based on which penalty has been levied has been restored back to the file of Ld CIT(A) by the Hon’ble ITAT in quantum appeal, therefore this appeal may also be restored to the file of Ld CIT(A) in the interests of justice .
On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities.
We have heard both the parties and carefully examined the orders of the lower authorities. We find that penalty order has been passed ex-parte and the Ld. CIT(A) has confirmed the order on the basis of finding in the assessment order. As submitted by the Ld. AR, the Hon’ble ITAT has restored the matter in quantum appeal to the file of Ld CIT(A), therefore penalty matter also need to be restored to the file of Ld CIT(A). Accordingly, we deem it appropriate to remit the matter back to the file of the Ld. CIT(A) for a denovo adjudication. We also direct the assessee to appear before the Ld. CIT(A) and to be diligent in submitting the relevant details for the adjudication of the case as and when called for. In view of the above, the appeal filed by the assessee is allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 28th March, 2025.