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Facts
The assessee filed an appeal against an order of the CIT(A) which confirmed a penalty levied under Section 270A. The assessee argued that the quantum appeal was still pending before the CIT(A) and requested the penalty issue be restored to be heard along with it.
Held
The Tribunal noted that penalty proceedings are a consequence of assessment proceedings. Since the quantum appeal was pending, the Tribunal set aside the CIT(A)'s order confirming the penalty and restored the issues to the CIT(A) for fresh adjudication along with the pending quantum appeal.
Key Issues
Whether the penalty proceedings should be adjudicated along with the pending quantum appeal before the CIT(A) in the interest of natural justice.
Sections Cited
270A, 250
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Income Tax Appellate Tribunal, “A” BENCH, KOLKATA
Before: SHRI GEORGE MATHAN & SHRI SANJAY AWASTHI
Present for: Appellant by : Shri Subhabrata Datta, AR Respondent by : Shri Ankur Goyal, JCIT, Sr. DR Date of Hearing : 20.03.2025 Date of Pronouncement : 20.03.2025 O R D E R Per Bench : This appeal has been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), NFAC, Delhi [hereinafter referred to as “the Ld. CIT(A)”] vide order no. ITBA/NFAC/S/250/2023- 24/1058355021(1) dated 30.11.2023 passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2018-19 arising out of the penalty order passed u/s. 270A of the Act vide No. ITBA/PNL/F/270A/2021-22/1040291996(1) dated 03.03.2022.
Shri Subhabrata Datta, AR appeared on behalf of the assessee and Shri Ankur Goyel, JCIT, Sr. DR appeared on behalf of the revenue.
Calcutta Division Life Insurance Employees Co-op. Credit Society Ltd. AY: 2018-19 3. It was submitted by the Ld. AR that the appeal is against an order by the Ld. CIT(A) confirming the penalty levied u/s. 270A of the Act. It was the submission that the quantum of appeal is still pending before the Ld. CIT(A). It was the submission that the quantum appeal is numbered as follows:
It was the submission that in the interest of justice the issue of the penalty may be restored to the file of the Ld. CIT(A) to be heard along with the quantum appeal mentioned above.
In reply, the Ld. Sr. DR submitted that in all fairness that would be appropriate action.
We have considered the rival submissions. As it is noticed that the penalty proceedings are consequence of the assessment proceedings and as the quantum appeal in the case of the assessee is still pending before the Ld. CIT(A), in the interest of natural justice, the order of the Ld. CIT(A) passed in confirming the penalty u/s. 270A of the Act in the impugned order is set aside and the issues in the appeal are restored to the file of the Ld. CIT(A) for adjudication afresh along with the quantum appeal of the assessee passed in the impugned assessment order mentioned above.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order dictated and pronounced in the open court.