RAJESH FILAMENTS PVT. LTD.,SURAT vs. DY. COMMISSIONER OF INCOME TAX, CIRCLE-2(1)(1), SURAT

सुनवाईकीतारीख/ Date of Hearing : 21/08/2023 घोषणाकीतारीख/Date of Pronouncement : 22/08/2023 आदेश / O R D E R PER DR. A. L. SAINI, ACCOUNTANT MEMBER: Captioned appeal filed by the assessee pertaining to the assessment year 2012-13, is directed against the order passed by the National Faceless Appeal Centre, Delhi [for short ‘NFAC/Ld.CIT(A)’] dated 10.05.2023, which in turn arises out of a penalty order passed by the Assessing Officer under section 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’), dated 20.03.2018.

raised by assessee are as follows:- “1. That on the facts and in circumstances of the case, as well as in law, the learned CIT(A), has erred in confirming the penalty levied by the A.O of Rs.55,85,940/- u/s 271(1)(c) of the Income Tax Act, 1961 (the Act). The penalty so levied by ld. AO and confirmed by Hon'ble CIT(A) is wrong on facts as well as in law and is contrary to the settled law. Appellant prays for deleting the same.

2. That on the facts and in the circumstances of the case as well as in law, learned CIT(A) has erred in upholding the penalty order passed by Ld. AO levying penalty of Rs.55,85,940/- u/s 271(1)(c) of the Act, whereas the penalty order passed by Ld. AO is clearly wrong, unjustified, invalid and contrary to the settled law. Appellant prays for quashing the penalty order so passed.”

3. At the outset Learned Counsel for the assessee submitted that in the assessee’s case under consideration, the penalty was levied by Assessing Officer u/s 271(1)(c) of the Act. However, on quantum addition, which relates to this penalty, has been remitted back to the file of NFAC/Ld. CIT(A) by this Tribunal. Since assessee’s quantum appeal, on the basis, which the Assessing Officer has levied penalty has remitted back to the NFAC/Ld. CIT(A) for fresh adjudication. Therefore, Ld. Counsel contended that the penalty imposed by Assessing Officer may also be remitted back to the file of NFAC/Ld. CIT(A) for fresh adjudication, as the penalty, if any, would depend upon the quantum addition, which may or may not sustain by NFAC/Ld. CIT(A).

4. On the other hand, Ld. Sr.DR for the Revenue did not have any objection if the mater may be remitted back to the file of NFAC/Ld. CIT(A) for fresh adjudication. The Ld. DR for the Revenue stated that quantum appeal of assessee has been remitted back to the file of NFAC/Ld. CIT(A) by this Tribunal for afresh adjudication, therefore NFAC/Ld. CIT(A) after adjudicating the appeal of assessee on quantum proceeding, may also adjudicate the appeal of assessee in respect of penalty proceedings u/s 271(1)(c) of the Act. Therefore, Ld. DR for the Revenue fairly agreed to remit this issue back to the file of NFAC/Ld. CIT(A).