Loading judgment…
Facts
The assessee appealed against a CIT(A) order imposing a penalty under section 271D for violation of section 269SS. The CIT(A) dismissed this appeal as withdrawn and infructuous, relying on an assessee's letter which was, in fact, meant for a separate appeal concerning a penalty under section 270A, where the underlying assessment was quashed by the High Court.
Held
The Tribunal held that the CIT(A) wrongly dismissed the appeal, as the penalty u/s 271D is independent of quantum assessment and other penalty proceedings. The assessee's withdrawal letter specifically related to a s. 270A penalty, not the s. 271D penalty. The appeal regarding the s. 271D penalty was thus restored to the CIT(A) for disposal on merits.
Key Issues
Whether an appeal against a penalty u/s 271D can be dismissed as withdrawn based on a letter meant for a penalty u/s 270A, and the independence of s. 271D penalty from quantum assessment.
Sections Cited
Section 250, Section 271D, Section 269SS, Section 270A
AI-generated summary — verify with the full judgment below
IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN
Before Shri George George K, Vice-President & Shri Inturi Rama Rao, Accountant Member
ITA No.233/Coch/2025 :Asst.Year 2017-2018
M/s.Alliance Homes | The Assistant Commissioner 1 <sup>st</sup> Floor, Prestige Centre | v. | of Income-tax Opp: Sub Registrars Office | Kannur. Kannur – 670 001. PAN :AAMFA1781C. (Appellant) | (Respondent)
Appellant by : Sri.A.P.Vinod Kumar, CA Respondent by : Smt.Leena Lal, Senior AR
Date of <b>Date of Hearing :15.05.2025</b> | <b>Pronouncement : 16.05.2025</b>
ORDER
Per George George K, Vice-President:
This appeal at the instance of assessee is directed against the order of the National Faceless Appeal Centre / Commissioner of Income Tax (Appeals) [hereinafter "CIT(A)"], dated 16.07.2024, passed u/s.250 of the Income-tax Act, 1961 (hereinafter "the Act") The relevant assessment year is 2017-2018.
The order of the CIT(A) arises out of the order imposing penalty u/s.271D of the Act for violation of the provisions of section 269SS of the Act. The CIT(A) dismissed the appeal of the assessee by observing as under:-
"Further, for this very AY 2017-18 in case of another appeal filed by this appellant against AO's penalty order u/s 270A of the Act, the appellant had submitted in its response dated 25.06.2024 to this Appellate Authority stating that, "Dear Sir as per the order of Hon. High court of Kerala our assessment of the AY 2017-18 was quashed and reassessment order was issued. A copy of reassessment order enclosed for your reference. In view of the above our appeal filed has become infructuous and may be treated as withdrawn. Thanking You APPELLANT.". Under these circumstances the Appellant has decided to repeal the appeal filed before Commissioner of Income Tax and the appellant requested for withdrawal of the appeal against the AO's other penalty orders for this AY itself."
We have heard rival submissions and perused the material on record. On perusal of the grounds raised before the CIT(A), we find that the assessee has challenged the imposition of penalty u/s.271D of the Act. The CIT(A) has wrongly dismissed the appeal of the assessee as infructuous and treated as withdrawn. The assessee's letter is for withdrawal of the appeal pertaining to the penalty imposed u/s.270A of the Act, since the Hon'ble High Court had quashed the reassessment order. The penalty imposed u/s.271D of the Act is in violation of provisions of sec.269SS of the Act and the same is independent from the quantum assessment framed. The assessee's letter is also placed on record for the withdrawal of the appeal and the same pertains to an appeal arising from the penalty imposed u/s.270A of the Act. In the light of the aforesaid reasons, the appeal is restored to the file of the CIT(A). The CIT(A) is directed to dispose of the same on merits. It is ordered accordingly.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on this 16th day of May, 2025.
Sd/-
(Inturi Rama Rao) ACCOUNTANT MEMBER VICE-PRESIDENT
Sd/-
(George George K)
Cochin; Dated : 16th May, 2025.
Devadas G\*
Copy to :
- 1. The Appellant. - 2. The Respondent. - 3. The CIT, Cochin. - 4. The DR, ITAT, Cochin. - 5. Guard File.
Asst.Registrar/ITAT, Cochin