Coils & Transformer India Private Limited, New Delhi V. ACIT Circle 4(2), New Delhi

ITA 2316/DEL/2023

AI Insights

The case involves Coils & Transformer India Private Limited, the appellant, contesting a penalty order under section 270A of the Income Tax Act, 1961, issued by the Assessing Officer and upheld by the CIT (Appeals). The appellant argued that the penalty was void ab initio due to the absence of a show cause notice, which is a prerequisite for imposing such a penalty. The quantum appeal regarding the assessment year 2017-18 is still pending before the CIT (Appeals). Both parties agreed that the resolution of the quantum appeal could influence the penalty appeal, leading to the decision to consolidate the hearings.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113162 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 03-10-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 13-08-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

I.T.A. No. 2316/Del/2023 1 IN THE INCOME TAX APPELLATE TRIBUNAL [ DELHI BENCH “S.M.C.” : DELHI ] BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER आ.अ.सं./I.T.A No. 2316/Del/2023 िनधाᭅरणवषᭅ/ Assessment Year: 2017-18 Coils & Transformer India Private Limited, N-76, Kirti Nagar, New Delhi – 110 015. बनाम Vs. ACIT, Circle : 4 (2), New Delhi. PAN No. AACCC8305R अपीलाथᱮ / Appellant ᮧ᭜यथᱮ / Respondent िनधाᭅᳯरतीकᳱओरसे /Assessee by : Shri J. S. Kochar, C. A.; राज᭭वकᳱओरसे / Department by : Shri Om Parkash, Sr. D. R.; सुनवाईकᳱतारीख/ Date of hearing : 04/10/2023 उ᳃ोषणाकᳱतारीख/Pronouncement on : 11/10/2023 आदेश / O R D E R PER C. N. PRASAD, J. M. : 1. This appeal is filed by the assessee against the order of the ld. Commissioner of Income Tax (Appeals) [hereinafter referred I.T.A. No. 2316/Del/2023 2 to CIT (Appeals)]/National Faceless Appeal Centre [NFAC] Delhi, dated 21.06.2023 for assessment year 2017-18. 2. The ld. Counsel for the assessee, at the outset, submits that this appeal is filed against the penalty order passed under section 270A of the Income Tax Act, 1961 (the Act) and the quantum appeal is still pending before the ld. CIT (Appeals). The Ld. Counsel for the assessee submits that the decision in quantum appeal has a barring on the penalty levied by the Assessing Officer and the ld. CIT (Appeals) should have disposed of the quantum appeal first instead of penalty appeal. The Ld. Counsel for the assessee further submits that the penalty order is void ab initio having been passed pursuant to show cause notice dated 25.12.2019 which in fact was never issued and is sine qua non for passing the penalty order. The Ld. Counsel submits that this legal ground has been taken for the first time before the Tribunal. 3. The ld. DR has no serious objection in restoring this appeal to the ld. CIT (Appeals) for deciding along with the quantum appeal. 4. On hearing both the sides I am of the view that this appeal should go back to the ld. CIT (Appeals) and the ld. CIT (Appeals) shall decide both the quantum appeal as well as the penalty appeal together as the decision in quantum appeal has a barring on the appeal filed by the assessee against the penalty levied under section 270A of the Act. Thus, this appeal is restored to the file of the ld. CIT (Appeals) and the same shall be disposed of along with I.T.A. No. 2316/Del/2023 3 the quantum appeal after providing adequate opportunity of being heard to the assessee. 5. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on : 11/10/2023. Sd/- ( C. N. PRASAD ) JUDICIAL MEMBER Dated : 11/10/2023. *MEHTA* Copy forwarded to :- 1. Appellant; 2. Respondent; 3. CIT 4. CIT (Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, New Delhi. Date of dictation 05.10.2023 Date on which the typed draft is placed before the dictating member 06.10.2023 Date on which the typed draft is placed before the other member 11.10.2023 Date on which the approved draft comes to the Sr. PS/ PS 11.10.2023 Date on which the fair order is placed before the dictating member for pronouncement 11.10.2023 I.T.A. No. 2316/Del/2023 4 Date on which the fair order comes back to the Sr. PS/ PS 11.10.2023 Date on which the final order is uploaded on the website of ITAT 11.10.2023 Date on which the file goes to the Bench Clerk 11.10.2023 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