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Facts
The assessee filed appeals against the orders of the Ld. CIT(A) that affirmed penalties levied under Section 271(1)(c) for various assessment years. The assessee argued that the penalty orders should be set aside because the underlying quantum additions had already been restored by the Tribunal to the Ld. CIT(A) for fresh adjudication.
Held
The Tribunal observed that since the quantum additions, upon which the penalties are dependent, were previously remanded to the Ld. CIT(A) for de novo adjudication, the instant penalty appeals are also restored to the Ld. CIT(A) for fresh adjudication. The Ld. CIT(A) is directed to pass a speaking order under Section 250(6) after providing a reasonable opportunity of hearing to the assessee.
Key Issues
Whether penalty proceedings under Section 271(1)(c) can be sustained when the quantum additions forming the basis of such penalty have been set aside and remanded for de novo adjudication.
Sections Cited
271(1)(c), 250(6)
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Income Tax Appellate Tribunal, PUNE BENCHES “B”, PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
आदेश / ORDER
PER BENCH:
The above bunch of appeals at the instance of assessee are against the orders of ld.CIT(A) evenly dated 19.11 2024 affirming the levy of penalty u/s.271(1)(c) of the Act pertaining to assessment years 2013-14, 2014-15, 2016-17 and 2015-16 respectively.
At the outset, Ld. Counsel for the assessee submitted that the impugned orders of penalty deserve to be set aside and restored back to the file of ld.CIT(A) as the issue of quantum additions have already been restored to the file of ld.CIT(A) by this Tribunal in 79, 82 and 84/PUN/2025 order dated 21.03.2025. Ld. Departmental Representative failed to controvert this contention.
We have heard the rival contentions and perused the record placed before us. Instant four appeals under appeal are against the levy of penalty u/s.271(1)(c) of the Act. We find that the quantum issue was also challenged by the assessee and vide order dated 21.03.2025 this Tribunal has restored the issue of quantum additions to the file of ld.CIT(A) for denovo adjudication. Since quantum additions have already been restored to the file of ld.CIT(A) and the levy of penalty is dependent upon the additions made in the hands of assessee, the instant four appeals are also restored back to the file of ld.CIT(A) for afresh adjudication and for passing a speaking order as contemplated u/s.250(6) of the Act after providing reasonable opportunity of hearing to the assessee. Effective grounds of appeal raised by the assessee in the instant batch of appeals are allowed for statistical purposes.
In the result, all the four appeals of the assessee are allowed for statistical purposes.
Order pronounced on this 30th day of April, 2025.