COILS & TRANSFORMER INDIA PRIVATE LIMITED,NEW DELHI vs. ACIT CIRCLE 4(2), NEW DELHI

This appeal is filed by the assessee against the order of the ld. Commissioner of Income Tax (Appeals) [hereinafter referred to CIT (Appeals)]/National Faceless Appeal Centre [NFAC] Delhi, dated 21.06.2023 for assessment year 2017-18.

The ld. Counsel for the assessee, at the outset, submits that this appeal is filed against the penalty order passed under section 270A of the Income Tax Act, 1961 (the Act) and the quantum appeal is still pending before the ld. CIT (Appeals). The Ld. Counsel for the assessee submits that the decision in quantum appeal has a barring on the penalty levied by the Assessing Officer and the ld. CIT (Appeals) should have disposed of the quantum appeal first instead of penalty appeal. The Ld. Counsel for the assessee further submits that the penalty order is void ab initio having been passed pursuant to show cause notice dated 25.12.2019 which in fact was never issued and is sine qua non for passing the penalty order. The Ld. Counsel submits that this legal ground has been taken for the first time before the Tribunal.

The ld. DR has no serious objection in restoring this appeal to the ld. CIT (Appeals) for deciding along with the quantum appeal.

On hearing both the sides I am of the view that this appeal should go back to the ld. CIT (Appeals) and the ld. CIT (Appeals) shall decide both the quantum appeal as well as the penalty appeal together as the decision in quantum appeal has a barring on the appeal filed by the assessee against the penalty levied under section 270A of the Act. Thus, this appeal is restored to the file of the ld. CIT (Appeals) and the same shall be disposed of along with the quantum appeal after providing adequate opportunity of being heard to the assessee.

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