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2019 (6) TMI 1260 - HC - Income Tax


Issues:
1. Impugned order levying penalty under Section 271(1)(c) of the Income Tax Act, 1961 for AY 2014-2015 challenged in writ petition.
2. Assessment proceedings challenged before Commissioner (Appeals) and ITAT.
3. ITAT remitted the matter back to the original authority.
4. Joint submission by counsels to set aside the impugned order and revive penalty proceedings post remand by ITAT.

Analysis:

1. The main issue in this case revolved around the impugned order dated 19.03.2019, which imposed a penalty on the writ petitioner assessee under Section 271(1)(c) of the Income Tax Act, 1961 for the assessment year 2014-2015. The writ petition challenged this order, which was the subject of contention before the court.

2. The assessment proceedings that led to the impugned order had been contested before the Commissioner (Appeals) and subsequently brought before the Income Tax Appellate Tribunal (ITAT). It was highlighted that during the pendency of proceedings before the ITAT, where the parent assessment for AY 2014-2015 was under dispute, the impugned penalty order was issued.

3. The ITAT, in its order dated 17.05.2019, remitted the matter back to the original authority, i.e., the respondent in the writ petition. This decision by the ITAT had a significant impact on the subsequent course of action regarding the penalty imposition and assessment proceedings.

4. Following the ITAT's remand order, both counsels jointly submitted that the impugned penalty order should be set aside. However, they also suggested that the penalty proceedings could be reinstated based on the outcome of the assessment proceedings before the respondent post remand by the ITAT. This joint submission aimed to address the evolving circumstances and the need for further actions based on the assessment results.

In conclusion, the court, considering the trajectory of events and the ITAT's order, set aside the impugned penalty order. The respondent was directed to redo the assessment in line with the ITAT's remand order. Subsequently, depending on the assessment outcome, the respondent was given the discretion to initiate penalty proceedings afresh. The writ petition was disposed of with these directions, and no costs were awarded.

 

 

 

 

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