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Facts
The assessee filed multiple appeals against orders of the National Faceless Appeal Centre (NFAC) dated 01.03.2023, confirming penalties under section 271(1)(c) and 271A of the Income Tax Act. The assessee contended that the CIT(A) erred by not allowing time for disposal of quantum additions, especially after the ITAT had directed the CIT(A) to re-fix the quantum addition appeals.
Held
The Tribunal noted that the quantum orders had already been remanded to the CIT(A). Consequently, in the interest of justice, the penalty appeals were also remanded to the CIT(A) for fresh adjudication, contingent upon the outcome of the quantum appeals.
Key Issues
Whether the CIT(A) erred in confirming penalties under sections 271(1)(c) and 271A without awaiting the finalization of the quantum appeals, especially when quantum orders had already been remanded.
Sections Cited
271(1)(c), 271A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI
Before: Dr. B. R. R. KumarSh. Anubhav Sharma
ORDER Per Bench: The present appeals have been filed by the assessee against the orders of National Faceless Appeal Centre (NFAC), Delhi dated 01.03.2023. Since, the issue involved in all these appeals are similar, they were heard together and being adjudicated by a common order. 2. Common ground raised by the assessee in & 1163/Del/2023. In ITA No. 1115/Del/2023, following grounds have been raised by the assessee:
“1. That the order of the ld. CIT(A) National Faceless Appeal Centre erred in law and infact (in confirming the penalty imposed u/s 271(1)(c) amounting to Rs.1,13,850/- by the ld. AO, ITO, Ward-1, Jind on wrong and untenable grounds.
ITA Nos. 1115, 1116 & 1163/Del/2023 2 Shamsher Singh 2. That the order of the ld. CIT(A) National Faceless Appeal Centre erred in law and infact (by not giving time to the appellant for disposal of quantum addition in the case of the assessee) (As Hon’ble ITAT, New Delhi have given directions to Hon’ble CIT(A) to again re-fix the appeal of quantum addition of the appellant) on wrong and untenable grounds.”
Common ground have been raised in & 1162/Del/2023. In ITA No. 1116/Del/2023, following grounds have been raised by the assessee:
“1. That the order of the ld. CIT(A) National Faceless Appeal Centre erred in law and infact (in confirming the penalty imposed u/s 271A amounting to Rs.25,000/- by the ld. AO, ITO, Ward-1, Jind on wrong and untenable grounds.
That the order of the ld. CIT(A) National Faceless Appeal Centre erred in law and infact (by not giving time to the appellant for disposal of quantum addition in the case of the assessee) (As Hon’ble ITAT, New Delhi have given directions to Hon’ble CIT(A) to again re-fix the appeal of quantum addition of the appellant) on wrong and untenable grounds.”
It was brought to our notice that the quantum orders stands remanded to the file of the ld. CIT(A) vide order dated 23.02.2022 and hence, in the interest of justice, the penalty appeals are also being remanded to the file of the ld. CIT(A) to adjudicate these appeals keeping in view the outcome in the quantum appeals.
In the result, the appeals of the assessee are allowed for statistical purpose. Order Pronounced in the Open Court on 08/02/2024. Sd/- Sd/- (Anubhav Sharma) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 08/02/2024 *Subodh Kumar, Sr. PS*