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Facts
The assessee filed appeals against penalties levied under sections 271A(1), 270A(1)(d), and 271F of the Income Tax Act for Assessment Year 2017-18. The assessee's counsel requested that these penalty appeals be set aside and restored to the CIT(A) because the quantum appeal for the same assessment year had already been set aside and remanded for fresh adjudication on merits.
Held
The Tribunal noted that the quantum appeal for the assessee for AY 2017-18 had indeed been set aside and restored to the CIT(A) for fresh adjudication on merits. Consequently, the Tribunal decided to set aside and restore all four penalty appeals to the CIT(A) to be decided along with the quantum appeal, after providing the assessee with an adequate opportunity of being heard.
Key Issues
The key legal issue was whether the penalty appeals should also be set aside and remanded to the CIT(A) for fresh adjudication, given that the corresponding quantum appeal had already been remanded.
Sections Cited
Section 271A(1), Section 270A(1)(d), Section 271F, Section 208, Section 209, Section 249(4)(b)
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Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR
Before: DR. MITHA LAL MEENA, HON’BLE & SHRI SUDHIR PAREEK, HON’BLE
ORDER PER BENCH: These appeals are filed by the assessee against the separate order of National Faceless Appeal Centre, NFAC, Delhi [hereinafter referred to as “the NFAC/CIT appeal”] dated 21.08.2024 with respect to assessment year 2017-18 challenging therein penalty levied u/s 271A(1), 270A(1)(d) and 271F of the Income Tax Act.
At the outset, the Ld. Counsel for the assessee has submitted that the quantum appeal of the present assessee has been set aside and restore to the to 769/Jodh/2024 Asst. Year: 2017-18 2 file of the Ld. CIT(A) to adjudicate the appeal on merits of the case. Accordingly, he prayed that these appeals may also be set aside to the Ld. CIT(A) to be decided along with the quantum appeal.
Ld. DR stands by impugned order.
Having heard both the sides and perusal of record, we find that the quantum appeal of the assessee in with respect to Assessment Year 2017-18 vide order dated 10.02.2025 has been restored back to the file of the Ld. CIT(A) by observing vide para 8 as under:
“In the present case, the assessee had not only before the Tribunal but had also stated before the Commissioner (Appeals) that he had no taxable income, therefore, in absence of any obligation cast upon the assessee to compute/pay ‘advance tax’ under sections 208 and 209 for the subject year, the first appellate authority could not have held that he had failed to comply with the statutory conditions contemplated in section 249(4)(b). Meaning thereby that the order of the NFAC is liable to be set aside and accordingly, it is restored to the file of CIT(A)/NFAC with a direction to dispose off the appeal after considering the merits of the case. Further, the Commissioner (Appeals) shall in course of the set aside proceedings afford a reasonable opportunity of being heard to the assessee.”
Since in the quantum appeal, the order of the Ld. CIT(A) has been set aside and restored back for afresh adjudication and hence all these four to 769/Jodh/2024 Asst. Year: 2017-18 3 penalty appeals would also be set aside and restored back to the file of the Ld. CIT(A) to be decided along with the quantum appeal after granting adequate opportunity of being heard and considering the written submissions of the assessee.
Accordingly, these instant appeals in and 769/Jodh/2024 are restored to the file of the Ld. CIT(A) to adjudicate afresh in accordance with law.
All these captioned appeals are allowed for statistical purpose.