SURESH KUMAR DIVAKAR,SAMBALPUR vs. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1(1), SAMBALPUR, SAMBALPUR
Facts
The assessee filed an appeal against the penalty order, which was confirmed by the CIT(A). The assessee's earlier appeal concerning the quantum assessment for the same year had been quashed by the Tribunal due to the reassessment proceedings being quashed.
Held
Since the quantum assessment order was quashed by the Tribunal, the consequential penalty proceedings also fail. Therefore, the penalty levied by the AO and confirmed by the CIT(A) stands deleted.
Key Issues
Whether the penalty sustained by the CIT(A) is liable to be deleted when the quantum assessment order itself was quashed by the Tribunal.
Sections Cited
IT Act
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Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR
आयकर अपीलीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य एवं श्री राजेश कुमार, लेखा सदस्य के समक्ष । (THROUGH VIRTUAL HEARING) BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.43/CTK/2025 (नििाारण वर्ा / Assessment Year : 2013-2014) Suresh Kumar Divakar, Vs ACIT,Circle-1(1), Sambalpur 3rd Floor, Paradise Chamber, Budharaja, Sambalpur PAN No. :AGUPD 1872 B (अपीलार्थी /Appellant) (प्रत्यर्थी / Respondent) .. नििााररती की ओर से /Assessee by : Shri P.K.Mishra, Himanshu Jena & Narahari Swain, Ars राजस्व की ओर से /Revenue by : Shri Nishanth Rao, B, Sr.DR सुनवाई की तारीख / Date of Hearing : 15/07/2025 घोषणा की तारीख/Date of Pronouncement : 15/07/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 11.12.2024 for assessment year 2013-2014. 2. It was submitted by the ld AR that the appeal is against penalty levied by the AO and confirmed by the ld. CIT(A). It was the submission that against the quantum assessment, the assessee had filed an appeal before the Tribunal and the Tribunal vide its order dated 26.06.2023, passed in ITA No.129/CTK/2022 in assessee’s own case has quashed the reassessment proceedings. It was the submission that consequently the penalty proceedings should also be quashed. 3. In reply Ld. Sr. DR vehemently supported the orders of the ld. AO & ld.CIT(A).
2 ITA No.43/CTK/2025 4. We have considered the rival submissions. As it is noticed that the quantum assessment in the case of the assessee has already been quashed by the Tribunal on account of reassessment proceedings being quashed, therefore, the consequential penalty proceedings would also fail, insofar as the assessment order itself has been quashed. Thus, the penalty levied by the AO and confirmed by the ld. CIT(A) stands deleted. 5. In the result appeal of the assessee is allowed. Order dictated and pronounced in the open court on 15/07/2025. Sd/- Sd/- (राजेश कुमार) (जाजज माथन) (RAJESH KUMAR) (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 15/07/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : अपीलाथी / The Appellant- 1. 2. प्रत्यथी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), आयकर आयुक्त / CIT 4. 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, Cuttack गार्ज फाईल / Guard file. 6. आदेशािुसार/ BY ORDER, सत्यापपत प्रयत //True Copy//
(Assistant Registrar) आयकर अपीलीय अधिकरण, कटक/ITAT, Cuttack
