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Facts
The Assessee filed an appeal against a penalty order for AY 2012-13. The penalty was based on a quantum addition that a Co-ordinate Bench of the Tribunal had previously set aside and remanded for de-novo assessment. The Assessee sought deletion of the penalty order based on this prior decision.
Held
The Tribunal determined that the foundation for the penalty proceedings, being the quantum addition, had already been set aside and remanded for re-assessment. Consequently, the impugned penalty order and the CIT(A)'s order were deemed unsustainable and were deleted. The A.O. was granted the liberty to initiate fresh penalty proceedings contingent on the outcome of the de-novo assessment.
Key Issues
Whether a penalty order, based on an underlying quantum addition, remains valid when the said quantum addition has been set aside and remanded for de-novo assessment by a Co-ordinate Bench of the Tribunal.
Sections Cited
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Income Tax Appellate Tribunal, DELHI BENCH: ‘B’ NEW DELHI
Before: SH. PRADIP KUMAR KEDIA & SHRI YOGESH KUMAR U.S.
This appeal is filed by the Assessee for the Assessment Year 2012-13 against the order of the CIT(A)/National Faceless Appeal Centre (‘NFAC’ for short) Delhi) dated 30/09/2022. record contending that the Co-ordinate Bench of the Tribunal has set aside the quantum appeal and remanded the matter to the file of the A.O. for de-novo assessment therefore, sought for deleting the order of penalty. The Ld. DR has not disputed the above fact.
We have carefully considered the order dated 05/07/2024 of the Coordinate Bench of the Tribunal in filed by the Assessee for the AY 2012-13 challenging the quantum addition, wherein the Co-ordinate Bench of the Tribunal set aside the addition made by the A.O. which has been confirmed by the CIT(A) and remanded the matter to the file of the A.O. for de-novo adjudication. Considering the fact that the very basis for initiating the penalty proceedings being the addition made in the assessment order which has been set aside and directed to make de-novo assessment to the A.O., the impugned penalty order and the order of the CIT(A) does not survive. Accordingly, the impugned order of penalty is hereby deleted and the A.O. is at liberty to initiate fresh penalty proceedings based on the outcome of the assessment proceedings.
Order pronounced in the open court on 10th October, 2024.