PALMSHORE HOTELS PRIVATE LIMITED,TRIVANDRUM vs. ACIT, CIRCLE 1(1), , TRIVANDRUM
Facts
Palmshore Hotels Pvt. Ltd. (assessee) appealed against a CIT(A) order confirming a penalty of Rs. 15,51,990/- imposed under Section 270A of the Income Tax Act, 1961, for Assessment Year 2017-18. The Tribunal had previously restored the related quantum appeal (ITA No. 983/Coch/2024) to the Assessing Officer for fresh adjudication.
Held
The Tribunal held that since the underlying quantum appeal had already been restored to the Assessing Officer for fresh adjudication, the present penalty appeal under Section 270A should also be restored to the Assessing Officer. The adjudication of the penalty issue would depend on the outcome of the quantum appeal.
Key Issues
Whether the penalty imposed under Section 270A of the Income Tax Act, 1961, was sustainable when the underlying quantum assessment appeal had been restored to the Assessing Officer for fresh adjudication.
Sections Cited
270A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI PRAKASH CHAND YADAV, JM
IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI PRAKASH CHAND YADAV, JM ITA No. 1052 /Coch/2024 Assessment Year: 2017-18 Palmshore Hotels Pvt. Ltd. .......... Appellant Light House Road, Vizhinjam, Thiruvananthapuram 695521 [PAN: AABCP3814F] vs. ACIT, Circle-1(1), Thiruvananthapuram .......... Respondent Appellant by: Shri Rajeev R., CA Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 21.05.2025 Date of Pronouncement: 27.06.2025
O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)], dated 21.10.2024 for Assessment Year (AY) 2017-18 confirming the penalty imposed by the Assessing Officer u/s. 270A of Income Tax Act, 1961 (hereinafter "the Act") of Rs. 15,51,990/-.
At the outset it is submitted that the Tribunal had restored the quantum appeal in ITA No. 983/Coch/2024 to the file of AO for fresh adjudication. Therefore, the learned counsel for the assessee
2 ITA No. 1052/Coch/2024 Palmshore Hotels Pvt. Ltd prayed that this appeal may also be to the AO for reconsidering it based on the outcome in the quantum appeal.
The learned Sr. DR did not raise any serious objection to the submission of the learned counsel for the assessee.
We have heard rival contentions and perused the material available on record. Since the quantum appeal is restored to the file of AO for fresh adjudication, the present appeal is also restored to the AO for adjudicating the issue based on the outcome in the quantum appeal.
In the result, appeal filed by the assessee stands partly allowed.
Order pronounced in the open court on 27th June, 2025.
Sd/- Sd/- (PRAKASH CHAND YADAV) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER Cochin, Dated: 27th June, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File Assistant Registrar ITAT, Cochin
