SHRI ABHIJIT UTTAMRAO DESHMUKH,BEED vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-3, AURANGABAD, AURANGABAD
Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI R. K. PANDA & MS. ASTHA CHANDRAAssessment year : 2011-12
PER R. K. PANDA, VP :
This appeal filed by the assessee is directed against the order dated
03.07.2024 of the Ld. CIT(A) / NFAC, Delhi relating to assessment year 2011-12. 2. 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.83,04,375/- levied by the Assessing Officer u/s 271(1)(c) of the Income Tax
Act, 1961 (hereinafter referred to as ‘the Act’).
Facts of the case in brief, are that the assessee is an individual. On the basis of information received from Dy. Director of Income Tax (Inv.) that the assessee has received an amount of Rs.2.5 crores in financial year 2010-11 against sale of land to Hi-tech Engineering Corporation India Pvt. Ltd., Baramati and the said
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amount has been written off by Hi-tech Engineering Pvt. Ltd. in their balance sheet, the case of the assessee was reopened as per the provisions of section 147 of the Act. Accordingly, notice u/s 148 of the Act was issued. The assessee had neither filed the original return nor filed any return in response to the notice u/s 148. The notice issued u/s 142(1) also remains un-complied with. The Assessing
Officer, therefore, completed the assessment u/s 144 of the Act determining total income of the assessee at Rs.6,17,50,440/- by adding the amount of Rs.2.5 crores to the total income of the assessee.
The assessee filed an appeal before the Ld. CIT(A) / NFAC which was pending. In the meantime, the Assessing Officer initiated penalty proceedings u/s 271(1)(c) of the Act. In absence of any compliance from the side of the assessee to the notice u/s 271(1)(c) of the Act, the Assessing Officer levied penalty of Rs.83,04,375/- u/s 271(1)(c) of the Act being the minimum penalty leviable.
In appeal, the Ld. CIT(A) / NFAC confirmed the penalty levied by the Assessing Officer.
Aggrieved with such order of the Ld. CIT(A) / NFAC, the assessee is in appeal before the Tribunal.
We have heard the rival arguments made by both the sides and perused the orders of the Assessing Officer and Ld. CIT(A) / NFAC. We find in the instant case the quantum appeal is pending before the Ld. CIT(A) and in the meantime,
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the Assessing Officer initiated penalty proceedings u/s 271(1)(c) of the Act and levied penalty of Rs.83,04,375/- u/s 271(1)(c) of the Act. Since the quantum appeal is still pending before the Ld. CIT(A) / NFAC, therefore, considering the totality of the facts of the case, we deem it proper to restore the issue back to the file of the Ld. CIT(A) / NFAC with a direction to decide the penalty appeal after the quantum appeal is decided. Needless to say, he shall give due opportunity of being heard to the assessee and decide the issue as per fact and law. The assessee is also hereby directed to participate in the appellate proceedings on the appointed date without seeking any adjournment under any pretext, failing which the Ld.
CIT(A) / NFAC is at liberty to pass appropriate order as per law. We hold and direct accordingly. 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.
Order pronounced in the open Court on 20th March, 2025. (ASTHA CHANDRA)
VICE PRESIDENT
पुणे Pune; दिन ांक Dated : 20th March, 2025
GCVSR
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आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to:
अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent
4. The concerned Pr.CIT, Pune DR, ITAT, ‘A’ Bench, Pune 5. गार्ड फाईल / Guard file.
आदेशानुसार/ BY ORDER,
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Senior Private Secretary
आयकर अपीलीय अधिकरण ,पुणे
/ ITAT, Pune
S.No.
Details
Date
Initials
Designation
1
Draft dictated on 06.03.2025
Sr. PS/PS
2
Draft placed before author
17.03.2025
Sr. PS/PS
3
Draft proposed & placed before the Second Member
JM/AM
4
Draft discussed/approved by Second
Member
AM/AM
5
Approved Draft comes to the Sr. PS/PS
Sr. PS/PS
6
Kept for pronouncement on Sr. PS/PS
7
Date of uploading of Order
Sr. PS/PS
8
File sent to Bench Clerk
Sr. PS/PS
9
Date on which the file goes to the Head
Clerk
10
Date on which file goes to the A.R.
11
Date of Dispatch of order