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Facts
The assessee appealed against a penalty levied under Section 271(1)(c) for Assessment Year 2016-17, which was confirmed by the CIT(A). However, the original quantum assessment order from which this penalty arose had already been restored by the Tribunal to the Assessing Officer for fresh adjudication.
Held
The Tribunal set aside the impugned penalty order and restored the penalty proceedings to the Assessing Officer for fresh adjudication. This fresh adjudication is to be done after the finalization of the quantum assessment, which was previously remanded.
Key Issues
Whether the penalty under Section 271(1)(c) can be upheld when the quantum assessment, on which the penalty is based, has been set aside and remanded for fresh adjudication.
Sections Cited
271(1)(c)
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Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH
Before: HON’BLE SHRI LALIET KUMAR, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2016-17 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 16-08-2024 confirming penalty levied by Ld. AO u/s 271(1)(c) vide order dated 26-12-2023. 2. It emerges that quantum assessment order against which this penalty spring out, has already been restored back by Tribunal to the file of Ld. AO for fresh adjudication vide order dated 28-11-2024. This being so, the impugned order is set aside and the penalty stand restored back to the file of Ld. AO for fresh adjudication in the light of quantum order passed in set aside proceedings. 3. The appeal stand allowed for statistical purposes. Order pronounced on 01-07-2025.
Sd/ Sd/- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 01-07-2025. आदेश की �ितिलिप अ�ेिषत / Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF ASSISTANT REGISTRAR
ITAT CHANDIGARH