2020 (6) TMI 364 - AT - Income Tax

Levy of penalty - HELD THAT - Since the very basis for levy of penalty i.e. issue of quantum has been set aside to the file of the learned AO, we are of the considered opinion that penalty based on such non-existent ground does not survive. In the fitness of things, we set aside the impugned order and remand the issue of penalty to the file of the AO to take a view in consonance with the view to be taken on the aspect of quantum. Appeal of the assessee is allowed, for statistical purposes.

Summary

Issues:
Appeal against penalty order for assessment year 2008-09.

Analysis:
The appeal was filed against a penalty order dated 28/02/2017 passed by the Commissioner of Income Tax (Appeals)-30, New Delhi, for the assessment year 2008-09. The Assessee, M/s. Sunshine Capital Ltd., challenged the penalty imposed. The Authorized Representative highlighted that the penalty arose from an addition previously addressed by the Tribunal in a separate case. The Tribunal had ruled in ITA No. 787 (Del) of 2014 that the issue should be remanded to the Assessing Officer. The counsel for the Assessee presented the Tribunal's order, which was reviewed by the bench. The Senior Departmental Representative did not dispute the facts presented. After hearing both parties and examining the records, the Tribunal concluded that since the basis for the penalty was linked to the quantum issue, which had been set aside for reassessment, the penalty itself could not be sustained. Consequently, the Tribunal set aside the penalty order and remanded the penalty issue back to the Assessing Officer for a decision consistent with the quantum assessment. The appeal of the Assessee was allowed for statistical purposes, and the order was pronounced in open court on 02/03/2020.