ROOPANAND RAMACHANDRAN,CHENNAI V. .INCOME TAX OFFICER, CHENNAI

ITA 2180/CHNY/2024

AI Insights

The case involves an appeal by Shri Roopanand Ramachandran against the order of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which pertained to the assessment year 2011-12. The appeal challenged an exparte order concerning the levy of penalty under section 271(1)(c) of the Income Tax Act, 1961. The assessee's advocate argued that the quantum addition for the same assessment year was still pending adjudication and had been remanded back by the ITAT for fresh consideration. The assessee requested that the penalty appeal be held in abeyance until the quantum appeal was decided. The Departmental Representative opposed this, emphasizing the separateness of assessment and penalty proceedings. The ITAT decided to remand the penalty matter back to the CIT(A) to be considered alongside the pending quantum addition.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 107345 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Other Referred Cases: ITA No. 2533/Chny/2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: C. MURUGRESAN
• Assessee Lawyers: V. DHANASEKARAN
• Section: 144; 271(1)(c)

Judgement Text

"आयकर अपीलीय अिधकरण, ’ए’ Ɋायपीठ, चेɄई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ŵी एस.एस. िवʷनेũ रिव, Ɋाियक सद˟ एवं ŵी जगदीश, लेखा सद˟ क े समƗ । Before Shri S.S. Viswanethra Ravi, Judicial Member & Shri Jagadish, Accountant Member आयकर अपील सं./I.T.A. No.2180/Chny/2024 िनधाŊरण वषŊ/Assessment Year: 2011-12 Shri Roopanand Ramachandran, No. 307, Lloyds Road, Royapettah, Chennai 600 014. [PAN:AAIPR3151P] Vs. The Income Tax Officer, Non Corporate Ward 12(2), Greams Road Chennai 600 006. (अपीलाथŎ/Appellant) (ŮȑथŎ/Respondent) अपीलाथŎ की ओर से / Appellant by : Shri V. Dhanasekaran, Advocate ŮȑथŎ की ओर से/Respondent by : Shri C. Murugresan, Addl. CIT सुनवाई की तारीख/ Date of hearing : 28.11.2024 घोषणा की तारीख /Date of Pronouncement : 19.12.2024 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order dated 27.06.2024 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2011-12 challenging exparte order of the ld. CIT(A) against levy of penalty under section 271(1)(c) of the Income Tax Act, 1961 [“Act” in short]. 2. At the outset, the ld. AR Shri V. Dhanasekaran, Advocate submits that the quantum addition for AY 2011-12 in assessee’s case did not I.T.A. No.2180/Chny/24 2 attain its finality and pending before the ld. CIT(A) by virtue of the directions of the Tribunal vide its order dated 20.12.2020 in ITA No. 2533/Chny/2019 for fresh adjudication, copy of the order is placed on record. He further submits that the ld. CIT(A) has not issued any notice of hearing against quantum addition so that the assessee could furnish documents and evidence in support of his claim, instead, the ld. CIT(A) issued notice for the appeal against penalty order passed by the Assessing Officer, is not correct, despite the prayer of the assessee to keep the penalty appeal in abeyance until adjudication of quantum appeal. The ld. AR prayed that the penalty levied under section 271(1)(c) of the Act may be remanded to the file of the ld. CIT(A) to consider both quantum addition as well as penalty under section 271(1)(c) of the Act. 3. The ld. DR Shri C. Murugesan, Addl. CIT vehemently opposed the same and submitted that the assessment proceedings and penalty proceedings are separate and the assessee failed to avail various opportunities afforded by the ld. CIT(A) and the Assessing Officer for furnishing explanation and the documentary evidences, if any. He strongly supported the order passed by the ld. CIT(A). 4. Having heard both the parties, we note that assessment is completed under section 144 of the Act dated 18.12.2018 assessing total I.T.A. No.2180/Chny/24 3 income of the assessee at ₹.36,25,000/-. On appeal, the ld. CIT(A) confirmed the addition vide his order dated 01.07.2019, against which, the assessee preferred an appeal before the ITAT. The ITAT vide its order dated 20.10.2020 in ITA No. 2533/Chny/2019 remanded the matter back to the file of the ld. CIT(A) to adjudicate the matter after considering relevant documents as may be filed by the assessee and we note that the appeal against quantum addition is still pending for adjudication. Considering the facts and circumstances of the case and in the interest of justice, we deem it proper to remand the matter to the file of the ld. CIT(A) to adjudicate levy of penalty under section 271(1)(c) of the Act along with quantum addition after considering the documentary evidences as may be filed by the assessee in accordance with law. The assessee is at liberty to file evidence in support of his claim. Thus, the grounds raised by the assessee are allowed for statistical purposes. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 19th December, 2024 at Chennai. Sd/- Sd/- (JAGADISH) ACCOUNTANT MEMBER (S.S. VISWANETHRA RAVI) JUDICIAL MEMBER Chennai, Dated, 19.12.2024 I.T.A. No.2180/Chny/24 4 Vm/- आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant, 2.ŮȑथŎ/ Respondent, 3. आयकर आयुƅ/CIT, Chennai/Madurai/Coimbatore/Salem 4. िवभागीय Ůितिनिध/DR & 5. गाडŊ फाईल/GF. "