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Facts
The assessee challenged an order by CIT(A)/NFAC dated 14.07.2025, arguing it was invalid and without jurisdiction as the same appeal for AY 2011-12 had already been decided by CIT(A)-13 on 20.06.2018. Based on the earlier order, the Assessing Officer had already dropped penalty proceedings under Section 271(1)(c) of the Income Tax Act, 1961. The Ld. DR conceded that the issue was previously decided in the assessee's favor, and due to technical errors, the appeal was re-fixed.
Held
The Tribunal observed that the issue concerning the deduction claimed under Section 80IC had already been decided in the assessee's favor by an earlier CIT(A) order dated 20.06.2018, leading to the dropping of penalty proceedings. Consequently, the subsequent CIT(A)/NFAC order dated 14.07.2025, which dismissed the appeal for non-prosecution on the same issue, was deemed infructuous and set aside. The grounds raised by the assessee were allowed.
Key Issues
Whether the CIT(A)/NFAC had jurisdiction to pass a second order dismissing an appeal when the same issue for the same assessment year had already been decided by an earlier CIT(A) order, leading to the dropping of penalty proceedings.
Sections Cited
271(1)(c), 80IC
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI R. K. PANDA & SHRI VINAY BHAMORE
Assessment year : 2011-12 Frontline Electronics Ltd. DCIT, Circle – 8, Pune Plot No.E-7 B/2, Chakan Industrial Vs. Area, Phase III, Nighoje, Khed, Pune – 410501 PAN: AAACF2689P (Appellant) (Respondent) Assessee by : Shri Kishor B Phadke Department by : Shri Basavaraj Hiremath, Addl.CIT Date of hearing : 05-01-2026 Date of pronouncement : 07-01-2026 O R D E R PER R.K. PANDA, VP:
This appeal filed by the assessee is directed against the order dated 14.07.2025 of the Ld. CIT(A) / NFAC, Delhi relating to assessment year 2011-12.
The grounds raised
by the assessee read as under:
1. Appellant contends that the order passed by the learned CIT(A), NFAC on 14/07/2025 by dismissing appeal is invalid and bad in law, as the said order is passed without Jurisdiction. The learned CIT(A), NFAC ought to have appreciated that the appeal for AY 2011-12 was already decided by the learned CIT(A)-13, Pune vide order dated 20/06/2018.
2. The learned CIT(A), NFAC further ought to have appreciated that based on the order of the learned CIT(A)-13, Pune dated 20/06/2018, the learned faceless AO had dropped the penalty proceeding u/s 271(1)(c) of the ITA, 1961 by passing order on 06/01/2022 for AY 2011-12.
3. Appellant contends that the order passed by the learned CIT(A)-13, Pune on 20/06/2018 be restored and appellant should be granted deduction u/s 80-IC of the ITA, 1961 of Rs.32,95,032/- as per the said order dated 20/06/2018.
4. Appellant craves leave to add/alter/modify/amend/delete all / any of the Grounds of Appeal.
The Ld. Counsel for the assessee at the outset filed a copy of the order passed by the Ld. CIT(A) for this very assessment year on 20.06.2018. Further, following the order of the Ld. CIT(A), the Assessing Officer has dropped the penalty proceedings initiated by him u/s 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). He submitted that the order passed by the Ld. CIT(A) / NFAC is a duplicate one passed on 14.07.2025 and he has dismissed the appeal on account of non-appearance. He submitted that since the appeal has already been decided by the Ld. CIT(A) vide order dated 20.06.2018, therefore, the present appeal order passed by the Ld. CIT(A) / NFAC becomes infructuous.
The Ld. DR on the other hand fairly conceded that the Ld. CIT(A) has already decided the issue in favour of the assessee vide order dated 20.06.2018 and following the said order, the Assessing Officer has also dropped the penalty proceedings u/s 271(1)(c) of the Act. Due to some technical errors, the appeal has again been fixed by the Ld. CIT(A) / NFAC.
We have heard the rival arguments made by both the sides, perused the orders of the Assessing Officer and Ld. CIT(A) / NFAC and the paper book filed on behalf of the assessee. A perusal of the details furnished by the Ld. Counsel for the assessee shows that the Ld. CIT(A) has already decided the issue in favour of the assessee vide order dated 20.06.2018. We find following the above order, the Assessing Officer has dropped the penalty proceedings initiated u/s 271(1)(c) of the Act. Since the issue in this appeal relates to the deduction claimed u/s 80IC of the Act amounting to Rs.67,85,548/- which has already been decided by the Ld. CIT(A) in favour of the assessee and since the Assessing Officer following the said order has dropped the penalty proceedings initiated u/s 271(1)(c) of the Act, therefore, the present order passed by the Ld. CIT(A) / NFAC on this very issue dismissing the appeal for non-prosecution becomes infructuous. Accordingly, the same is set aside and the grounds raised by the assessee are allowed.
In the result, the appeal filed by the assessee is allowed.
Order pronounced in the open Court on 7th January, 2026.
Sd/- Sd/- (VINAY BHAMORE) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 7th January, 2026 GCVSR आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपील र्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. The concerned Pr.CIT, Pune 4. DR, ITAT, ‘A’ Bench, Pune 5. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune
S.No. Details Date Initials Designation 1 Draft dictated on 05.01.2026 Sr. PS/PS 2 Draft placed before author 05.01.2026 Sr. PS/PS Draft proposed & placed before the 3 JM/AM Second Member Draft discussed/approved by Second 4 AM/AM Member 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS Date on which the file goes to the Office 9 Superintendent 10 Date on which file goes to the A.R. 11 Date of Dispatch of order