Rajesh Filaments Pvt. Ltd., Surat V. Dy. Commissioner Of Income Tax, Circle-2(1)(1), Surat

ITA 409/SRT/2023

AI Insights

The case involves Rajesh Filaments Pvt. Ltd., which appealed against a penalty order confirmed by the National Faceless Appeal Centre (NFAC)/Ld. CIT(A). The penalty of Rs. 55,85,940 was imposed by the Assessing Officer under section 271(1)(c) of the Income Tax Act, 1961, related to the assessment year 2012-13. The primary contention was that the penalty was unjustified and based on a quantum addition that has been remitted back for fresh adjudication by the Tribunal. Both parties agreed that the penalty should also be reconsidered following the outcome of the quantum appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 302009 (ITAT-SURAT)
• Duration Of Justice: 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 20-08-2023
• Assessment Year: 2012-2013
• Appeal Filed On: 07-06-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JM &DR. A.L.SAINI, AM आयकर अपील सं./ITA No.409/SRT/2023 (िनधाŊरणवषŊ / Assessment Year: (2012-13) (Virtual Court Hearing) Rajesh Filaments Pvt. Ltd. 218, Jeevandeep Opp. J.K. Tower, Ring Road, Surat-395002 Vs. Deputy Commissioner of Income Tax, Circle-2(1)(1), Surat, Aaykar Bhavan, Majura Gate, Surat- 395001 ̾थायीलेखासं./जीआइआरसं./PAN/GIR No.: AABCR 1294 F (अपीलाथŎ/Appellant ) (ŮȑथŎ /Respondent) िनधाŊįरती की ओर से /Assessee by : Shri Ramesh Malpani, C.A िनधाŊįरती की ओर से /Respondent by : Shri Vinod Kumar – Sr.DR सुनवाईकीतारीख/ Date of Hearing : 21/08/2023 घोषणाकीतारीख/Date of Pronouncement : 22/08/2023 आदेश / O R D E R PER DR. A. L. SAINI, ACCOUNTANT MEMBER: Captioned appeal filed by the assessee pertaining to the assessment year 2012-13, is directed against the order passed by the National Faceless Appeal Centre, Delhi [for short ‘NFAC/Ld.CIT(A)’] dated 10.05.2023, which in turn arises out of a penalty order passed by the Assessing Officer under section 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’), dated 20.03.2018. 2. Grounds of appeal raised by assessee are as follows:- “1. That on the facts and in circumstances of the case, as well as in law, the learned CIT(A), has erred in confirming the penalty levied by the A.O of Rs.55,85,940/- u/s 271(1)(c) of the Income Tax Act, 1961 (the Act). The penalty so levied by ld. AO and confirmed by Hon'ble CIT(A) is wrong on facts as well as in law and is contrary to the settled law. Appellant prays for deleting the same. 2. That on the facts and in the circumstances of the case as well as in law, learned CIT(A) has erred in upholding the penalty order passed by Ld. AO levying penalty of Rs.55,85,940/- u/s 271(1)(c) of the Act, whereas the penalty order passed by Ld. AO is clearly wrong, unjustified, invalid and contrary to the settled law. Appellant prays for quashing the penalty order so passed.” Page | 2 ITA No.409/SRT/2023 A.Y. 2012-13 Rajesh Filaments Pvt. Ltd 3. At the outset Learned Counsel for the assessee submitted that in the assessee’s case under consideration, the penalty was levied by Assessing Officer u/s 271(1)(c) of the Act. However, on quantum addition, which relates to this penalty, has been remitted back to the file of NFAC/Ld. CIT(A) by this Tribunal. Since assessee’s quantum appeal, on the basis, which the Assessing Officer has levied penalty has remitted back to the NFAC/Ld. CIT(A) for fresh adjudication. Therefore, Ld. Counsel contended that the penalty imposed by Assessing Officer may also be remitted back to the file of NFAC/Ld. CIT(A) for fresh adjudication, as the penalty, if any, would depend upon the quantum addition, which may or may not sustain by NFAC/Ld. CIT(A). 4. On the other hand, Ld. Sr.DR for the Revenue did not have any objection if the mater may be remitted back to the file of NFAC/Ld. CIT(A) for fresh adjudication. The Ld. DR for the Revenue stated that quantum appeal of assessee has been remitted back to the file of NFAC/Ld. CIT(A) by this Tribunal for afresh adjudication, therefore NFAC/Ld. CIT(A) after adjudicating the appeal of assessee on quantum proceeding, may also adjudicate the appeal of assessee in respect of penalty proceedings u/s 271(1)(c) of the Act. Therefore, Ld. DR for the Revenue fairly agreed to remit this issue back to the file of NFAC/Ld. CIT(A). 5. We have heard both the parties and perused the materials available on record. We note that this Tribunal has remitted the quantum appeal of assessee back to the file of NFAC/Ld. CIT(A) vide ITA No. 405/SRT/2018 dated 04.06.2021 for fresh adjudication. Therefore, we note that since the quantum appeal of assessee, on the basis of which penalty was imposed by Assessing Officer has been remitted back to the file of NFAC/Ld. CIT(A) for fresh adjudication. Therefore, we are of the view that penalty which is Page | 3 ITA No.409/SRT/2023 A.Y. 2012-13 Rajesh Filaments Pvt. Ltd connected to quantum assessment, should also be remitted back to the file of NFAC/Ld. CIT(A) for fresh adjudication. Based on the quantum addition, if any, the penalty may be levied or may not be levied by NFAC/Ld. CIT(A). If there is no quantum addition, the penalty may not be levied by NFAC/Ld. CIT(A), thus it depends upon quantum addition, if any, made by NFAC/Ld. CIT(A), hence, we are of the view that the said lis should be remitted back to the file of NFAC/Ld. CIT(A). Therefore we set aside the order of NFAC/Ld. CIT(A) and remit the matter back to the file of NFAC/Ld. CIT(A) for de novo adjudication. This assessee’s appeal is treated as allowed for statistical purposes. 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on 22/08/2023 by placing the result on the notice board. Sd/- Sd/- (PAWAN SINGH) (Dr. A.L. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER Surat/िदनांक/ Date: 22/08/2023 Dkp Outsourcing Sr.P.S. Copy of the Order forwarded to 1. The Assessee 2. The Respondent 3. The CIT(A) 4. Pr.CIT 5. DR/AR, ITAT, Surat 6. Guard File By Order // True Copy // Assistant Registrar/Sr. PS/PS ITAT, Surat rue copy/