THE CO. OP. CRE SOC. OF VIS LIMITED,MEHSANA vs. THE DY. CIT, CIRCLE GANDHINAGAR, GANDHINAGAR

At the outset, Ld. Counsel submitted that the Co-ordinate Bench of this Tribunal in assessee’s own case for the very same Asst. Year 2016-17 on the quantum appeal in dated 23/03/2022 set aside the matter back to the file of Ld. CIT(A) to adjudicate the issue of expenses to be allowed against the interest income earned from Nationalized Bank to be adjudicated afresh after considering the facts of the case. Therefore the levy of penalty be modified accordingly.

We have given our thoughtful consideration and perused the materials available on record including the quantum order passed by Co-ordinate Bench of this Tribunal. At this Juncture, we hereby reproduced Section 275(1A) of the Act, which reads as follows: “275(1A) In a case where the relevant assessment or other order is the subject matter of an appeal 33[to the Joint Commissioner (Appeals) or] to the Commissioner (Appeals) under section 246 or section 246A or an appeal to the Appellate Tribunal under section 253 or an appeal to the High Court under section 260A or an appeal to the Supreme Court under section 261 or revision under section 263 or section 264 and an order imposing or enhancing or reducing or cancelling penalty or dropping the proceedings for the imposition of penalty is passed before the order of 33[the Joint Commissioner (Appeals) or] the Commissioner (Appeals) or the Appellate Tribunal or the High Court or the Supreme Court is received by the 34[***] Principal Commissioner or Commissioner or the order of revision under section 263 or section 264 is passed, an order imposing or enhancing or reducing or cancelling penalty or dropping the proceedings for the imposition of penalty may be passed on the basis of assessment as revised by giving effect to such order of 33[the Joint Commissioner (Appeals) or] the Commissioner (Appeals) or, the Appellate Tribunal or the High Court, or the Supreme Court or order of revision under section 263 or section 264: Provided that no order of imposing or enhancing or reducing or cancelling penalty or dropping the proceedings for the imposition of penalty shall be passed— (a) unless the assessee has been heard, or has been given a reasonable opportunity of being heard; (b) after the expiry of six months from the end of the month in which the order of 34a[the Joint Commissioner (Appeals) or] the Commissioner A.Y. 2016-17 Page No 3 The Co.op Credit Society of VIS Ltd. vs. DCIT (Appeals) or the Appellate Tribunal or the High Court or the Supreme Court is received by the 34b[***] Principal Commissioner or Commissioner or the order of revision under section 263 or section 264 is passed:”