2024 (12) TMI 760 - AT - Income Tax

Penalty levied u/s.271(1)(c) - Appeal against quantum assessment is still pending - HELD THAT - Bearing on the penalty as contented by assessee for the interest of natural justice and fair play, we set-aside the impugned order of the CIT(A) and direct him to pass orders in the appeal preferred against levy of penalty u/s.271(1)(c) after deciding the quantum appeal of the assessee for AY 2016-17. Assessee is at liberty to raise all the issues before the Ld.CIT(A) and the Ld.CIT(A) to decide the penalty appeal after passing/adjudicating the grounds of appeal preferred by the assessee against the assessment order for AY 2016-17.

Summary

The ITAT Chennai allowed the appeal of the assessee against the penalty imposed by the AO under section 271(1)(c) of the Income Tax Act, 1961 for AY 2016-17. The ITAT directed the CIT(A) to decide on the penalty after adjudicating the quantum appeal of the assessee. The appeal was allowed for statistical purposes.