NOIDA SPECIAL ECONOMIC ZONE ATHORITY,NOIDA vs. DCIT CIRCLE-2, NOIDA
Facts
The assessee appealed against a penalty order passed u/s 271(1)(c) for Assessment Year 2013-14, which arose from an alleged wrong claim of deduction of Rs. 4,86,76,333/- u/s 80-IAB of the Income-tax Act. The quantum additions related to this claim were previously set aside by the ITAT to the CIT(A) for re-adjudication and are still pending finality.
Held
The Tribunal observed that the quantum proceedings, forming the basis of the penalty, had not reached finality and were pending before the CIT(A). Therefore, the Tribunal restored the penalty appeal to the CIT(A) for fresh adjudication, instructing them to consider the outcome of the quantum appeal.
Key Issues
Whether a penalty under Section 271(1)(c) for an alleged wrong deduction claim is sustainable when the quantum additions forming the basis of the penalty are still pending final adjudication by appellate authorities.
Sections Cited
Income-tax Act, 1961, Section 250(6), Section 271(1)(c), Section 80-IAB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “F”: NEW DELHI
Before: SHRI PRADIP KUMAR KEDIA & SHRI VIMAL KUMAR
PER PRADIP KUMAR KEDIA, AM:
Captioned appeal has been filed at the instance of the assessee against the
first appellate order dated 31.12.2018 passed u/s 250(6) of the Income-tax Act,
1961, hereafter referred to as the “Act”, which in turn arises from the penalty order
passed u/s 271(1)(c) of the Act dated 29.03.2018 passed by the Assessing Officer
for the assessment year 2013-14 in question.
2 ITA no. 6047/Del/2019 2. When the matter was called for hearing, learned counsel for the assessee, at
the outset, submitted that penalty has been imposed u/s 271(1)(c) of the Act
alleging wrong claim qua deduction of Rs. 4,86,76,333/- u/s 80-IAB of the Act.
In this case learned counsel pointed out that the subject matter of addition
was challenged before the appellate authorities. The ITAT in ITA no.
5041/Del/2016, order dated 1.11.2019, has eventually set aside the quantum
additions to the file of the CIT(A) to re-decide the issue in the light of certain
submissions made on behalf of the assessee. The quantum additions are thus
pending for adjudication before the learned CIT(A).
In the light of submissions made on behalf of the assessee where the
quantum proceedings have not reached finality and is subject matter of appeal
before the CIT(A), it will be expedient to restore the present appeal against penalty
imposed also to the file of CIT(A). The CIT(A) shall adjudicate the grievance of
the assessee towards imposition of penalty u/s 271(1)(c) keeping in mind the
outcome of quantum appeal which led to penalty in question. The CIT(A) shall
pass speaking order after giving opportunity. Matter is thus set aside for
adjudication by the CIT(A) in accordance with law.
3 ITA no. 6047/Del/2019 5. In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in open court on 30.10.2024.
Sd/- Sd/- (VIMAL KUMAR) (PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated: 30.10.2024. *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI
Draft dictated 29.10.2024 Draft placed before author 29.10.2024 Approved Draft comes to the Sr. PS/PS Order signed and pronounced on File comes to P.S. File sent to the Bench Clerk Date on which file goes to the AR Date on which file goes to the Head Clerk Date of dispatch of Order Date of uploading on the website
