2018 (9) TMI 151 - AT - Income Tax

Penalty proceedings initiated u/s.271(1)(c) - Held that - As quantum appeal has been set aside to the file of the ld. CIT (A), therefore, impugned penalty appeal is also remitted to the file of the ld. CIT(A) to be decided a fresh after the disposal of the quantum and in accordance with law. - Decided in favour of assessee

Summary

Issues:
Appeal against penalty proceedings under section 271(1)(c) for AY 2010-11.

Analysis:
The appeal was filed against an order dated 02.11.2017 by the Ld. CIT (Appeals), Faridabad, imposing a penalty of ?4,84,907 on the assessee. The Tribunal had previously set aside the matter to the file of the Ld. CIT (A) in the quantum proceedings, directing a speaking order to be passed after granting the assessee a reasonable opportunity of being heard. The counsel for the assessee argued that since the quantum appeal had been remitted, the penalty appeal should also be set aside. The Department Representative did not object, acknowledging the remittance of the matter in the quantum proceedings. Consequently, the Tribunal remitted the penalty appeal to the file of the Ld. CIT (A) to be decided afresh after the disposal of the quantum proceedings and in accordance with the law. As a result, the appeal of the assessee was allowed, and the order was pronounced on 29th August 2018.