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Facts
The assessee's appeal is against a penalty levied under Section 271(1)(c) of the Act. The penalty stemmed from an assessment where additional interest income and profit were brought to tax due to the non-filing of the return of income. The penalty was confirmed by the CIT(A).
Held
The Tribunal noted that a quantum appeal was pending before the CIT(A) and its outcome would impact this penalty appeal. Therefore, the matter was restored to the AO for fresh adjudication in light of the quantum appeal's outcome.
Key Issues
Whether the penalty levied under Section 271(1)(c) can be adjudicated before the outcome of the pending quantum appeal, and if it should be restored to the AO for fresh consideration.
Sections Cited
271(1)(c), 143(3), 147
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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
(िनधा�रणवष� / Assessment Year: 2013-14) Sukhmani Society for Citizen Services ITO बनाम/ Patiala -147001. Ward No 4, Vs. Patiala. 147001 �थायीलेखासं./जीआइआरसं./PAN/GIR No. AADAS-5525-P (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Smt. Aroma Arora (Advocate) and Shri Ritesh Juneja (CA) – Ld. ARs ��थ�कीओरसे/Respondent by : Dr Ranjit Kaur (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 19-05-2025 घोषणाकीतारीख /Date of Pronouncement : 20-05-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2013-14 arises out of an order of learned Commissioner of Income Tax (Appeals), Patiala [CIT(A)] dated 17-01-2019 in the matter of penalty levied by Ld. AO u/s 271(1)(c) for Rs.10.12 Lacs consequent to an assessment framed u/s 143(3) r.w.s.147 of the Act on 13-12-2016. In the assessment order, Ld. AO brought to tax additional interest income of Rs.0.75 Lacs. Since the assessee did not file return of income, the profit of Rs.31.02 Lacs was additionally brought to tax. Against this assessment, Ld. AO levied impugned penalty for Rs.10.12 Lacs vide order dated 27-06-2017 which stood confirmed by Ld. CIT(A). Aggrieved, the assessee is in further appeal before us. The Ld. AR has stated that quantum appeal is pending for adjudication before Ld. CIT(A) and the outcome of the same shall have direct bearing on this appeal.
Considering the above factual position, we deem it fit to restore the matter of penalty back to the file of Ld. AO for fresh adjudication in the light of outcome of the quantum appeal. The assessee is directed to plead and prove its case.
The appeal stand allowed for statistical purposes. Order pronounced on 20-05-2025.