LATE PANNADEVI AGARWAL,MUMBAI vs. ACIT CIR 18(2), MUMBAI

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ITA 24/MUM/2017Status: DisposedITAT Mumbai28 August 2018AY 2002-032 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the quantum appeal related to the disallowance of short-term capital loss had been restored to the CIT(A) for fresh adjudication. Therefore, the penalty appeal and all related grounds, including additional grounds, were also restored to the CIT(A) for fresh examination.

What were the facts?

The assessee is contesting a penalty levied under Section 271(1)(c) of the Income Tax Act, 1961, which was confirmed by the CIT(A). The penalty was based on the disallowance of short-term capital loss claimed by the assessee.

What were the issues?

Whether the penalty levied under Section 271(1)(c) is sustainable when the underlying quantum addition is subject to fresh adjudication. The assessee also raised a legal issue by way of an additional ground.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” Bench, Mumbai

Before: Shri B.R. Baskaran (AM) & Shri Ramlal Negi (JM)

For Appellant: Shri S.L. Jain
For Respondent: Shri M.V. Rajguru
Hearing: 28.8.2018Pronounced: 28.8.2018

O R D E R Per B.R. Baskaran (AM) :

The appeal filed by the assessee is directed against the order dated 8.10.2016 passed by the learned CIT(A)-33, Mumbai and it relates to A.Y. 2002-03.

2.

The assessee is contesting the decision of the learned CIT(A) in confirming the penalty of ` 5.89 lakhs levied by the Assessing Officer u/s. 271(1)(c) of the Act.

3.

Learned AR submitted that the penalty was levied by the Assessing Officer on the disallowance of short term capital loss claimed by the assessee. Learned AR submitted that the assessee has challenged the said disallowance in quantum appellate proceedings before the ITAT and the Tribunal, vide its order passed in dated 29.11.2007 has restored the matter to the file of the learned CIT(A) for adjudicating the same afresh. He

2 Late Smt. Pannadevi Agarwal Through legal heir Shri Madhav Prasad Aggarwal further submitted that the assessee has also raised a legal issue by way of additional ground in this penalty appeal.

4.

We have heard learned DR and perused the record. Since the quantum on which penalty has been levied u/s. 271(1)(c) of the Act has been restored to the file of the learned CIT(A), we deem it proper to restore grounds urged in this appeal including additional ground urged by the assessee to the file of the learned CIT(A) for examining it afresh. Accordingly, we set aside the order passed by the learned CIT(A) and restore all the issue including additional ground to the file of the learned CIT(A) for adjudicating them afresh, after affording adequate opportunity of being heard to the assessee.

5.

In the result, appeal filed by the assessee is treated as allowed for statistical purposes.

Order has been pronounced in the Court on 28.8.2018.

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