ASHOK SHAMKANT SATPUTE,PUNE vs. CIT(A), PUNE

Although a number of grounds have been raised by the assessee, however, these all relate to the order of the Ld. CIT(A) / NFAC in confirming the penalty of Rs.12,58,127/- levied by the Assessing Officer u/s 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

None appeared on behalf of the assessee at the time of hearing. However, the Ld. DR filed a copy of the order of the Tribunal in for assessment year 2014-15, dated 29.04.2021 stating that the quantum appeal has been restored to the file of the Ld. CIT(A). He, accordingly submitted that he has no objection if this penalty issue also is restored to the file of the Ld. CIT(A) for deciding the issue afresh after the quantum appeal is decided.

A perusal of the order of the Ld. CIT(A) / NFAC shows that the present appeal was dismissed due to non-prosecution. Since the penalty has been levied on account of addition of Rs.62,13,664/- under the head ‘Long term capital gains’ and since the quantum proceedings have already been restored to the file of the Ld. CIT(A) / NFAC, therefore, considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue of penalty to the file of the Ld. CIT(A) / NFAC with a direction to re-adjudicate the issue on the basis of outcome of the quantum appeal. The grounds raised by the assessee are accordingly allowed for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes.