Natasha Khanna, Delhi V. ITO, Ward-30(1), New Delhi

ITA 2157/DEL/2022

AI Insights

This case involves an appeal by Smt. Natasha Khanna against the order of the CIT(A)-30, New Delhi, which confirmed the penalty levied by the Assessing Officer under section 271(1)(c) of the Income-tax Act, 1961. The penalty was imposed following additions made in the assessment order dated 20.11.2015 under sections 147/144 of the Act. The primary contention of the assessee was that the CIT(A) decided on the penalty before resolving the quantum appeal. The Tribunal found this procedural sequence inappropriate and restored the issue to the CIT(A) for a fresh decision, emphasizing the need to first address the quantum additions before revisiting the penalty.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 300920 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 05-07-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 04-09-2022
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 147; 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘E’ BENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND MS. ASTHA CHANDRA, JUDICIAL MEMBER ITA No. 2157/DEL/2022 [A.Y. 2011-12] Smt. Natasha Khanna Vs. The Income-tax fOfficer P-84, Ground Floor, Chitranjan Ward – 30(1) Park, Alaknanda, New Delhi New Delhi PAN: AVEPK 0997 M (Applicant) (Respondent) Assessee By : --None-- Department By : Shri M. K. Pandey, Sr. DR Date of Hearing : 06.07.2023 Date of Pronouncement : 10.07.2023 ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER:- This appeal by the assessee is preferred against the order dated 08.07.2022 by the CIT(A)-30, New Delhi pertaining to Assessment Year 2011-12. 2 2. The solitary grievance of the assessee is that the ld. CIT(A) erred in confirming the penalty levied by the Assessing Officer u/s 271(1)(c) of the Income-tax Act, 1961 [the Act, for short] without deciding the quantum appeal first. 3. None appeared on behalf of the assessee inspite of several notices. We decided to proceed exparte. 4. As is evident from the above, the Assessing Officer levied penalty on the additions made in the assessment order dated 20.11.2015 framed u/s 147 /144 of the Income-tax Act, 1961 [the Act, for short]. 5. Assessment was challenged before the ld. CIT(A). 6. In the meantime, penalty proceedings were separately initiated. The Assessing Officer subsequently levied penalty of Rs. 3,88,825/- which was also challenged before the first appellate authority. Ironically, the first appellate authority decided the penalty first without deciding the fate of the quantum additions. Therefore, we are 3 of the considered view that this appeal needs to be decided afresh after deciding the fate of the quantum addition. We, accordingly, restore the issue to the file of the ld. CIT(A). 7. The ld. CIT(A) is directed to decide the appeal relating to levy of penalty u/s 271(1)(c) of the Act after deciding the appeal relating to quantum addition made in the assessment proceedings. 8. Needless to mention, the ld. CIT(A) shall provide reasonable and adequate opportunity of being heard to the assessee. 9. In the result, the appeal of the assessee in ITA No. 2157/DEL/2022 is allowed for statistical purposes. The order is pronounced in the open court on 10.07.2023. Sd/- Sd/- [ASTHA CHANDRA] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 10 th JULY, 2023. 4 VL/ Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Date of dictation Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr.PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr.PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order