POONAM PANDEY,GHAZIABAD vs. ACIT, CIRCLE- 2, GHAZIABAD

This is an appeal filed by the assessee against the order of Commissioner of Income Tax (Appeals)-1, Noida dated 29.06.2018 for assessment year 2014-15.

The sole issue involved in this appeal is that the CIT(A) erred in confirming the order of the AO levying penalty of Rs. 7,16,000/- u/s 271(1)(c) of the Act. 3. Non-appeared when the case was called for hearing and neither any adjournment was filed hence, the appeal is disposed of considering the submission of the DR. 4. The Departmental Representative of the assessee submitted that the quantum appeal of the assessee was decided by the Tribunal vide order dated 20.07.2018 in an order passed in ITA no. 7660/Del/2017. Wherein the Tribunal restored the matter back to the file of the AO for adjudication afresh. Therefore, it was his submission that the penalty appeal should also be restored back to the file of the AO for adjudication afresh in light of order passed by the AO in the quantum appeal of the assessee in the set aside proceeding.

I find that there is force in the submission of the Ld. DR. I find that the Tribunal vide order dated 20.07.2018 has remanded the issue involved in the quantum appeal to the file of the AO for adjudication afresh. In the circumstances, it would be fit and proper to restore back the issue of penalty u/s 271(1)(c) of the Act to the file of the AO for adjudication afresh in light of his decision in the set aside proceedings of the quantum appeal. We ordered accordingly.