MRS. ALKA GOEL,NEW DELHI vs. ITO, NEW DELHI

The only grievance of the assessee in this appeal relates to the confirmation of penalty of Rs.7,47,989/- levied by the AO u/s 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as the Act).

During the course of hearing, the ld. Counsel for the assessee at the very outset stated that the assessment order on the basis of which the impugned penalty was levied has been set aside to the AO for fresh adjudication in for the assessment year 1999- 2000 by the ITAT Delhi Bench ‘SMC’, New Delhi vide order dated ITA No. 3371/Del/2017 2 Alka Goel 30.06.2017, as such the addition on the basis of which penalty was levied is not inexistence.

In his rival submissions the ld. DR although supported the orders of the authorities below but could not controvert the aforesaid contention of the ld. Counsel for the assessee.

After considering the submissions of both the parties and the material available on the record, it is noticed that the assessment order passed by the AO on the basis of which the impugned penalty was levied has been set aside to the file of the AO vide order dated 30.06.2017 in ITA No. 3065/Del/2014. The relevant findings have been given in para 7 of the said order which read as under: “7. I have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case, it is not in dispute that the assessee had produced the additional evidences first time before the ITAT which were not before the AO or the ld. CIT(A). In my opinion, these documents furnished first time, are relevant to decide the present controversy. However, the authorities below did not have the occasion to deal with those documents furnished first time by the assessee. I, therefore, considering the totality of the facts, deem it appropriate to set aside this issue back to the file of the AO to be decided afresh in accordance with law after considering the documents furnished by the assessee first time before the Tribunal and also the contention raised in the additional grounds. The AO shall provide a due and reasonable opportunity of being heard to the assessee.” 3 Alka Goel 6. Since, the assessment order for the year under consideration has been set aside to the file of the AO and the penalty u/s 271(1)(c) of the Act is co-related, therefore, the impugned order is set aside and the matter is restored back to the file of the AO to be adjudicated afresh after considering the outcome of the assessment order directed to be passed afresh vide aforesaid referred to order dated 30.06.2017.

In the result, the appeal filed by the assessee is allowed for statistical purposes. (Order Pronounced in the Court on 25/09/2017)