ANAND JESUDAS,COIMBATORE vs. ACIT, COIMBATORE

Shri N. Vijaykumar, the Ld. representative for the assessee submitted that the Assessing Officer made addition of ₹42,60,000/- being the deposit made in HDFC bank. According to the Ld. representative, the Assessing Officer made addition only on the ground that the deposit in the bank account were not reflected in the salary statement of the assessee. The appeal of the assessee against the quantum addition is now pending before the Commissioner of Income Tax (Appeals). Therefore, the Ld. representative submitted that this matter may be remitted back to the file of the CIT (Appeals) for reconsideration.

On the contrary, Shri R. Durai Pandian, the Ld. Departmental Representative submitted that when the quantum addition made by the Assessing Officer came before this Tribunal in this Tribunal by an order dated 07.10.2016 remitted back the matter to the file of the CIT (Appeals) for reconsideration. Since, the quantum appeal is pending before CIT (Appeals), the Ld. D.R., submitted that the penalty also may be remitted back to the file of the CIT (Appeals) for reconsideration.

We have considered the rival submissions on either side and perused the material available on record. When the quantum of addition is challenged before the CIT (Appeals), the CIT (Appeals) refused to condone the delay of 139 days in filing the appeal. In the appeal before this Tribunal, in fact condoned the delay of 139 days before the CIT (Appeals) and restored the appeal on the file of the CIT (Appeals) and the file is pending before CIT (Appeals) for consideration on merit. Therefore penalty levied by the Assessing Officer under Section 271(1)(c) of the Income Tax Act,1961 (in short ‘the Act’) was also to be reconsidered by the CIT (Appeals). One of the reasons for confirmation of penalty by the CIT (Appeals) is that the appeal filed by the assessee was dismissed due to delay in filing the appeal. Since that order was set aside by this Tribunal and the issue was remitted back to the CIT (Appeals), this Tribunal is of the considered opinion that penalty appeal is also to be reconsidered.

Accordingly the orders of the lower authorities are set aside and the issue of penalty under Section 271(1)(c) of the Act, is remitted back to the file of the CIT (Appeals). The CIT (Appeals) may consider the matter afresh along with quantum appeal said to be pending with him and thereafter decide in accordance with law after giving reasonable opportunity to the assessee.

In the result, the appeal of the assessee is allowed for statistical purpose.