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Facts
The assessee filed an appeal against a penalty order under Section 271(1)(c) with a 103-day delay, which the CIT(A) had not condoned. This penalty stemmed from a reassessment under Section 147 for AY 2013-14, which had added Rs. 30,00,000 to the income. The ITAT had previously condoned a 570-day delay in the related quantum proceedings and remanded that matter back to the CIT(A) for fresh adjudication.
Held
The Tribunal condoned the 103-day delay in filing the present appeal against the penalty order. Recognizing that the underlying quantum proceedings had already been remanded to the CIT(A) for fresh adjudication, the Tribunal set aside the impugned penalty order and also remanded it to the CIT(A) to be considered along with the quantum proceedings.
Key Issues
1. Condonation of delay in filing appeal against penalty order. 2. Remand of penalty proceedings when quantum proceedings are already remanded.
Sections Cited
148, 147, 144, 144B, 271(1)(c), 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C” BENCH”, KOLKATA
Appearances by: Assessee represented by : Anil Kochar, AR Department represented by : Subhro Das, Addl. CIT, Sr. DR Date of concluding the hearing : 15.05.2025 Date of pronouncing the order : 19.05.2025 O R D E R
PER SANJAY AWASTHI, ACCOUNTANT MEMBER
In this case, there is a delay of 103 days in the filing of the present appeal of which the assessee has filed a delay condonation petition as under:
“I, Dinesh Bhagwanji Parikh son of Late Bhagwanji V Parikh resident of Jashan, No.9 Park Road, Northern Town, Jamshedpur, Jharkhand 831001, Director of Eastern Auto Investo Pvt. Ltd. having Its registered office at 67, Bentick Street, Kolkata-700069 do hereby state and declare as under:
1. 1. That I am looking after the Income tax and accounts matter of the company styled M/s Eastern Auto Investo Pvt Ltd.
2. That for AY 2013-14 the JAO initiated re-assessment proceeding by issue of notice u/s 148 on 17.03.2020. The assessment was completed u/s 147 r.w.s 144 r.w.s 144B of the Income Tax Act on 23.09.2021 by making addition of Rs.30,00,000/- 3. That an appeal was preferred against the above-mentioned order on 17.05.2023. The Ld. CIT(A) vide order dated 20th June, 2024 did not condone the delay in submission of the appeal and consequently the appeal was dismissed.
That thereafter an appeal was preferred before the ITAT and the Hon'ble Bench in condone the delay of 570 days in filing the appeal and set aside the ex-parte order passed by the Ld. CIT(A) back to the file of Ld. CIT(A) for fresh adjudication.
That the Ld. A.O. In the meantime had levied penalty u/s 271(1)(c) of the Act in an amount of Rs.27,81,000/-on 27.01.2022.
That the appeal against the said order was preferred before the CIT(A) on 17.05.2023. The Ld. CIT(A) however had not condoned the delay in submission of the appeal and consequently dismiss the same.
That this fact of dismissal of the appeal against the order u/s 271(1)(c) came to the knowledge of the appellant only in the month of December, 2024 as because originally when site was accessed to at that point of time it was only the order passed against the 147 order was taken care of and inadvertently the second order purported to have been passed u/s 271(1)(c) could not be taken care of.
That in view of the facts stated above and also the assessment already made u/s 144 having been set-aside based upon which the penalty was levied it is the prayer before your Honour that delay in filing of the appeal before the Ld. CIT(A) and also before the ITAT may kindly be condoned and appeal be admitted for adjudication of Issues involved.” 1.1 Considering the reasons given in the said petition, we hereby condone the delay and admit this appeal for adjudication.
This appeal arises from order u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”), passed by Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, vide order dated 20.06.2024. Right at the outset, the Ld. AR mentioned that the matter in quantum proceedings stands remanded back to the file of Ld. CIT(A) vide order dated 30.09.2024. A copy of the said ITAT order has been placed on record and a copy was also shared with the Ld. DR.
We have carefully perused the order of ITAT in assessee’s own case for AY 2013-14, through which the matter has been remanded back to the file of Ld. CIT(A) for fresh adjudication. Since as of now the quantum proceedings are once again open before the Ld. CIT(A), we set aside the impugned order and remand these proceedings back to the file of Ld. CIT(A) for considering the said penalty proceedings along with quantum proceedings.
Order pronounced on 19.05.2025