ROOPANAND RAMACHANDRAN,CHENNAI vs. INCOME TAX OFFICER, CHENNAI

This appeal filed by the assessee is directed against the order dated 27.06.2024 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2011-12 challenging exparte order of the ld. CIT(A) against levy of penalty under section 271(1)(c) of the Income Tax Act, 1961 [“Act” in short].

At the outset, the ld. AR Shri V. Dhanasekaran, Advocate submits that the quantum addition for AY 2011-12 in assessee’s case did not attain its finality and pending before the ld. CIT(A) by virtue of the directions of the Tribunal vide its order dated 20.12.2020 in for fresh adjudication, copy of the order is placed on record. He further submits that the ld. CIT(A) has not issued any notice of hearing against quantum addition so that the assessee could furnish documents and evidence in support of his claim, instead, the ld. CIT(A) issued notice for the appeal against penalty order passed by the Assessing Officer, is not correct, despite the prayer of the assessee to keep the penalty appeal in abeyance until adjudication of quantum appeal. The ld. AR prayed that the penalty levied under section 271(1)(c) of the Act may be remanded to the file of the ld. CIT(A) to consider both quantum addition as well as penalty under section 271(1)(c) of the Act.

The ld. DR Shri C. Murugesan, Addl. CIT vehemently opposed the same and submitted that the assessment proceedings and penalty proceedings are separate and the assessee failed to avail various opportunities afforded by the ld. CIT(A) and the Assessing Officer for furnishing explanation and the documentary evidences, if any. He strongly supported the order passed by the ld. CIT(A).