RAJBIKRAM SINGH NAYAR,GURUGRAM vs. ITO, GURUGRAM

This appeal preferred by the assessee is directed against the order of the ld. Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi [for short ‘ld. CIT (A)] dated 14.03.2025 for Assessment year 2017-18 affirming the penalty order dated 03.02.2022 passed u/s 271AAC (1) of the Income-tax Act, 1961 (for short ‘the Act’).

At the time of hearing, ld. AR for the assessee brought to our notice that the quantum appeal in the present penalty matter has already been restored back to the file of ld. CIT (A) by the coordinated Bench of the ITAT vide order dated 28.04.2025 with a direction to ld. CIT (A) to decide the issues afresh after allowing adequate opportunity of being heard to the assessee. Accordingly, he prayed that the penalty matter may also be restored back to the file of ld. CIT (A).

On the other hand, ld. DR for the Revenue did not controvert the aforesaid proposition.

Considered the rival submissions and material placed on record. We observe that the coordinate Bench has already restored the matter in quantum appeal vide order dated 28.04.2025 (supra). Accordingly, in our considered view, since the quantum appeal is restored to the file of ld. CIT (A), the penalty appeal also requires to be restored to the file of ld. CIT (A) to decide as per law and assessee should be given an opportunity of being heard on merit. We order accordingly and the appeal filed by the assessee is allowed for statistical purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on this 23RD day of September, 2025 after the conclusion of the hearing.