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Facts
The assessee's appeal was delayed by 2 days, which was condoned by the Tribunal. The assessee contended that the penalty levied under Section 270A was unsustainable as the related quantum addition had been set aside by the Tribunal and restored to the Assessing Officer for fresh adjudication.
Held
The Tribunal held that with the quantum assessment order being set aside, the very foundation for the penalty under Section 270A no longer survived. Consequently, the penalty was deleted, although liberty was granted to the Assessing Officer to initiate fresh penalty proceedings if required in the set-aside quantum matter.
Key Issues
Whether the penalty levied under Section 270A of the Income Tax Act, 1961, survives when the assessment order on which it is based has been set aside and restored for fresh adjudication.
Sections Cited
270A
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Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
Before: SHRI GEORGE MATHAN & SHRI MADHUSUDAN SAWDIA
Assessee represented by Shri K.K. Bal, A.R. Department represented by Shri Sanjib Banerjee, Sr.DR Date of hearing 23/02/2026 Date of pronouncement 23/02/2026 O R D E R PER: BENCH 1. This is an appeal filed by the assessee against the order of the ld. CIT(A), NFAC, Delhi in Appeal No. NFAC/2018-19/10457128 dated 06/11/2025 for the A.Y. 2019-20.
Shri K.K. Bal, ld. A.R. appeared on behalf of the assessee and Shri Sanjib Banerjee, Sr.DR represented on behalf of the revenue.
The appeal of the assessee is delayed by 02 days. In this regard, the assessee has filed an application for condonation of delay stating therein sufficient reasons for delay in filing the appeal before the Tribunal, which are not found to be false. Ld. Sr. DR did not object to condone the delay. Accordingly, we condone the delay of 02 days in SBI Officers Multipurpose Co-op Society Vs ITO filing the appeal before the Tribunal and appeal of the assessee is admitted for hearing.
It was submitted by the ld. AR that the quantum addition for the A.Y. 2019- 20 in by an order dated 04/12/2025 has been restored by the Tribunal to the file of the Assessing Officer for readjudication afresh. It was the submission that consequently, the very legs on which this penalty has been levied, no more survives.
In reply, the ld. Sr.DR submitted that the liberty should be granted to the Assessing Officer to initiate penalty proceedings if so required in the set aside proceedings.
We have considered the rival submissions. As it is noticed that the quantum assessment order has been set aside, the foundation for the levy of penalty under Section 270A of the Income Tax Act, 1961 (in short, the Act) no more survives. Consequently, the penalty as levied under Section 270A of the Act by the Assessing Officer and as confirmed by the ld. CIT(A) stands deleted. However, liberty is granted to the Assessing Officer to initiate fresh penalty proceedings in the set aside of the quantum matter if so required.
In the result, appeal of the assessee is partly allowed. Order dictated and pronounced in the open court on 23/02/2026.