COMPACT AGENCIES PVT. LTD.,KOLKATA vs. DCIT/ACIT, CIRCLE- 3(1), KOLKATA

Brief facts of the case of the assessee is that the assessee filed its return of income for AY 2017-18 by declaring total income as Nil. The case was selected for limited scrutiny. Notice u/s 143(2) was issued and in response to the same, the assessee Assessment Year: 2017-18 Compact Agencies Pvt. Ltd. filed audited accounts, copy of return and computation of income. The AO after going over the submission and the document made by the assessee, assessed total income of the assessee as at Rs. 7,47,00,000/- as the AO made disallowance u/s 14A and also made addition unexplained investment u/s 69 of the Act. The AO has also started penalty proceedings u/s 274 read with Section 271AAC of the Act.

Aggrieved by the said order, the assessee preferred an appeal before the Ld. CIT(A) and also preferred an appeal against the penalty proceedings. The appeal of the assessee preferred u/s 143(2) has been dismissed by the Ld. CIT(A) and the appeal preferred u/s 271AAC(1) of the Act has also been dismissed. The present appeal has been preferred against the penalty proceedings.

The Ld. A.R instead of arguing into the merit of the case has only submitted that the matter should be remanded back to the file of AO as the order passed by the AO confirmed by the Ld. CIT(A) ignoring the reality that the order passed by the Ld. CIT(A) u/s 250 against the assessment order the assessee preferred an appeal before the ITAT being and the matter is sub-judice before the ITAT. The Ld. AR has only prayed that the AO should refrain himself in passing the order till the disposal of the appeal of the assessee pending before the ITAT.