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Facts
The assessee filed appeals against orders confirming penalties levied under sections 271AA and 270A of the Income Tax Act for the assessment year 2017-2018. The Id.CIT(A) had restored the quantum assessment issues to the AO for readjudication.
Held
The Tribunal noted that as the quantum assessment was restored to the AO, the basis for levying the penalties no longer existed. Consequently, the penalties levied under sections 271AA and 270A of the Act were quashed.
Key Issues
Whether the penalties levied under sections 271AA and 270A survive when the quantum assessment has been restored for readjudication.
Sections Cited
271AA, 270A
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Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI
Before: SHRI GEORGE MATHAN, JM & SHRI RATNESH NANDAN SAHAY, AM
Per Bench : These two appeals are filed by the assessee against the separate orders passed by the ld.CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 14.02.2025 for the assessment year 2017-2018, thereby confirming the penalty levied u/s.271AA and 270A of the Act.
It was submitted by the ld.AR that in the quantum assessment. The ld. CIT(A), NFAC has vide his order dated 21.01.2025 restored the issues to the appeal of the AO for readjudication. It was the submission that as the penalties no more survive, therefore, the penalties levied u/s.271AA and 270A of the Act are liable to be quashed.
In reply, ld.Sr. DR vehemently supported the orders of the authorities below.
We have considered the rival submissions. As it is noticed that the quantum assessment in the case of the assessee has been restored to the file of the ld. AO by the ld.CIT(A) vide his order dated 21.01.2025 for readjudication, the very legs for levy of penalty nor more survive. Consequently, the penalties levied u/s.271AA and 270A of the Act in both the appeals of the assessee stands quashed. Liberty is available with the AO to initiate fresh penalty proceedings, if the AO is so satisfied.
In the result, both appeals of the assessee are allowed. Order dictated and pronounced in the open court on 06/01/2026. (RATNESH NANDAN SAHAY) (GEORGE MATHAN) लेख सदस्य / ACCOUNTANT MEMBER न्य नयक सदस्य / JUDICIAL MEMBER र ाँची Ranchi; दिनांक Dated 06/01/2026 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनिललपप अग्रेपर्ि/Copy of the Order forwarded to : अपीलार्थी / The Appellant- . 1. प्रत्यर्थी / The Respondent- 2. 3. आयकि आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. निभागीय प्रनतनिनर्, आयकि अपीलीय अनर्किण, र ाँची / DR, ITAT, Ranchi 6. गार्ड फाईल / Guard file. आदेश िुस र/ BY ORDER, सत्यापपत प्रतत //// (Senior Private Secretary) आयकर अपीलीय अधिकरण, र ाँची / ITAT, Ranchi