SHRI SUKETU HAMUKHBHAI PATEL,,AHMEDABAD vs. THE INCOME TAX OFFICER, WARD-1(1)(3),, AHMEDABAD

The assessee, in the present case, is an individual. In the assessment completed u/s.143(3) of the Act vide an order dated 25/03/2015, the total income of the assessee was determined by the Assessing Officer at Shri Suketu Hasmukhbhai Patel vs. ITO AY 2012-13 2 Rs.56,87,752/- after making addition inter alia of Rs.20 lakhs u/s.68 of the Act by treating the deposits taken by the assessee from four persons as unexplained cash credit. Penalty proceedings u/s.271(1)(c) of the Act were also initiated by the Assessing Officer and since the explanation offered by the assessee in response to the notice issued during the course of said proceedings was not found satisfactory by him, the Assessing Officer imposed a penalty of Rs.6,18,000/- u/s.271(1)(c) of the Act being 100% of the tax sought to be evaded by the assessee in respect of addition of Rs.20 lakhs made u/s.68 of the Act.

The penalty imposed by the Assessing Officer u/s.271(1)(c) of the Act was challenged by the assessee in the appeal filed before the Ld.CIT(A) and since there was no compliance on the part of the assessee to the notices issued by him fixing the said appeal for hearing from time to time, the Ld.CIT(A) dismissed the appeal of the assessee vide his appellate order dated 23/08/2019 passed ex-parte thereby confirming the penalty of Rs.6,18,000/- imposed by the Assessing Officer u/s.271(1)(c) of the Act. Aggrieved by the order of the Ld.CIT(A), the assessee has preferred this appeal before the Tribunal. 4. At the time of hearing before the Tribunal, none has appeared on behalf of the assessee and an application seeking adjournment of the hearing is filed. The Ld. DR, however, has pointed out that the addition made u/s.68 of the Act of Rs.20 lakhs was challenged by the assessee in the quantum proceedings and while disposing of the appeal of the assessee vide an order dated 23/03/2018 passed in the matter has been remitted by the Tribunal to the file of Ld.CIT(A) for fresh adjudication. The matter relating to the addition of Rs.20 lakhs made to the total income of the assessee u/s. 68 of the Act in respect of which the Shri Suketu Hasmukhbhai Patel vs. ITO AY 2012-13 3 impugned penalty u/s. 271(1)(c) of the Act is imposed is now pending with the Ld.CIT(A) and keeping in view the same, we find merit in the contention of the Ld. DR that the matter relating to the penalty involved in the present appeal should also be remitted back to the file of Ld.CIT(A) for deciding the same afresh depending upon the outcome of the quantum proceedings. The impugned order of the Ld.CIT(A) confirming the imposition of penalty u/s.271(1)(c) of the Act is accordingly set aside and the matter is remitted back to the file of Ld.CIT(A) for deciding the same afresh depending on the outcome of the quantum proceedings which are pending with him.