GAJAMFAR ALI,ROHRU vs. INCOME TAX OFFICER WARD RAMPUR, RAMPUR

Aforesaid three appeals by assessee for Assessment Year (AY) 2010-11 assails confirmation of penalties as levied by Ld. AO u/s 271(1)(b) for Rs.60,000/-, penalty of Rs.25,000/- u/s 271A and penalty of Rs.5,01,260/- u/s 271(1)(c). The impugned orders of Ld. CIT(A) have dismissed the appeals in limine for want of condonation of delay of 139 days. Aggrieved, the assessee is in further appeal before us.

The Ld. AR, drawing attention to assessee’s background, pleaded for adjudication of appeal on merits. It has been stated that quantum appeal is already pending for adjudication before Ld. CIT(A). The Ld. Sr. DR pleaded for dismissal of the appeals.

Considering the fact that the quantum appeal would have direct bearing on impugned penalties as levied by Ld. AO u/s 271(1)(c) & u/s 271A, these penalties are to be adjudicated on merits in the light of quantum appeal. Therefore, the appeals qua these two penalties stand restored back to Ld. CIT(A) for adjudication of merits with a direction to the assessee to plead and prove its case forthwith. The issue of delay would not be raised by Ld. CIT(A).