2019 (6) TMI 99 - AT - Income Tax

Penalty u/s 271(1)(c) - assessee s quantum appeal has since been restored by a Coordinate Bench of this Tribunal - HELD THAT - In our considered opinion that it will be in the fitness of things if the penalty appeal is also restored to the file of the Assessing Officer. Accordingly, we restore this appeal to the file of the Assessing Officer with the liberty to initiate penalty proceedings afresh, if it is so warranted, once the quantum has been decided afresh. Appeal of the assessee stands allowed for statistical purposes.

Summary

Issues: Appeal against penalty imposition under section 271(1)(c) of the Income Tax Act, 1961

1. Background: The appeal was filed by the assessee against the penalty imposed under section 271(1)(c) of the Income Tax Act, 1961 for the assessment year 2010-11.

2. Contentions: The authorized representative (AR) of the assessee argued that since the quantum appeal had been restored to the file of the Assessing Officer, the penalty matter should also be sent back to the Assessing Officer.

3. Department's Response: The Senior Departmental Representative (DR) did not oppose the assessee's appeal being restored to the Assessing Officer, considering the restoration of the quantum appeal.

4. Judgment: After considering the submissions and noting that the quantum appeal had been restored by a Coordinate Bench of the Tribunal, the Tribunal decided to restore the penalty appeal to the file of the Assessing Officer. This decision was made to maintain consistency, allowing the Assessing Officer to initiate penalty proceedings afresh if necessary after the quantum appeal had been decided again.

5. Outcome: The appeal of the assessee was allowed for statistical purposes, indicating that the decision was made to restore the penalty appeal to the Assessing Officer for further proceedings. The order was pronounced in the open court on 31st May, 2019.