SHEETAL J SEA,MUMBAI vs. ITO WD 15(1)(3), MUMBAI

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ITA 2890/MUM/2014Status: DisposedITAT Mumbai11 January 2017AY 2009-102 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the quantum appeal was remanded to the AO, the penalty order could not survive. The penalty order was set aside, with liberty to the AO to initiate fresh penalty proceedings after passing a fresh assessment order.

What were the facts?

The assessee filed an appeal against a penalty order under Section 271(1)(c). The quantum appeal against the original assessment order had been sent back to the Assessing Officer (AO) by the Tribunal.

What were the issues?

Whether a penalty order under Section 271(1)(c) can survive when the underlying assessment order has been set aside and remanded to the Assessing Officer.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES “E”, MUMBAI

Before: SHRI MAHAVIR SINGH & SHRI ASHWANI TANEJA

For Appellant: Shri Prakash Jhunjhunwala
For Respondent: Shri Vishwas Mundhe

Date of hearing : 13-12-2016 Date of order : 11 -01-2017

O R D E R

Per ASHWANI TANEJA, AM:

1.

This appeal has been filed by the assessee against the order passed by the Commissioner of Income-tax (Appeals)-26, Mumbai [hereinafter called as CIT(A)] dated 18-02-2014 passed against the penalty order of the AO u/s 271(1)(c) for AY. 2009-10 dated 18-06-2012.

2.

During the course of hearing it was stated by the Ld. Counsel of the assessee that in this case, all the grounds raised in the quantum appeal against the assessment order filed by the assessee before the Tribunal has AO. Therefore, as on date, penalty order should not survive and may please be held so.

3.

Per contra, the Ld. DR relied upon the orders of the lower authorities.

4.

We have gone through the orders passed by the lower authorities. It is noted that the Tribunal has sent back all the issues raised in the assessment order to the AO vide its order dated05/12/2016 in ITA No.2713/Mum/2014. Therefore, as on date penalty order does not survive and the same is set aside. The AO shall be at his liberty to initiate penalty proceedings afresh as and when required, as per law, after passing of the assessment order, if any. Thus, with the aforesaid direction, appeal of the assessee is treated as allowed. Order was pronounced at the conclusion of the hearing.

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