Case Number: ITA 3030/DEL/2022
Appellant: Mulayam Singh, Ghaziabad
Respondent: ITO, Ward-1(4), Ghaziabad
Assessment Year: 2008-09
Case Filed On: 2022-12-27
Order Type: Final Tribunal Order
Date of Order: 2023-08-01
Pronounced On: 2023-08-01
In the case of Mulayam Singh vs. ITO, Ward-1(4), Ghaziabad, the appellant, Mulayam Singh, challenged the penalty levied under Section 271(1)(c) of the Income-tax Act for the assessment year 2008-09. The case was heard by the Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘E’ on 1st August 2023, with the final order pronounced on the same day.
The appeal arose from the order passed by the National Faceless Appeal Centre (NFAC) dated 26th October 2022. The appellant was not represented, while the respondent was represented by Ms. Smita Singh, Sr. DR. The primary grievance of the appellant was the confirmation of the penalty levied under Section 271(1)(c) of the Act.
The roots for the levy of penalty lay in the assessment order dated 10th December 2015 framed under Section 147/143(3) of the Act. The returned income of Rs. 131,131 was assessed at Rs. 1,792,555 after making an addition on account of short-term capital gain of Rs. 1,661,424. The quantum addition was challenged and traveled up to the Tribunal.
This Tribunal, in ITA No. 3768/Del/2018, vide order dated 8th October 2018, restored the quarrel to the file of the CIT(A) with a direction to decide the appeal on the merits of the case. In light of this order, the issue relating to the penalty was also set aside to the files of the CIT(A).
The ITAT bench, comprising Sh. N. K. Billaiya (Accountant Member) and Ms. Astha Chandra (Judicial Member), decided to remit the issue of the levy of penalty under Section 271(1)(c) back to the CIT(A). The CIT(A) was directed to decide the issue of levy of penalty after deciding the quantum appeal.
The tribunal’s order stated: ‘In the interest of justice, we remit the issue to the file of the CIT(A). The CIT(A) will consider the issue afresh after providing the appellant an opportunity of being heard.’
The appeal was allowed for statistical purposes, meaning the matter was sent back to the CIT(A) for reevaluation.
The ITAT’s decision emphasizes the importance of a thorough and fair assessment process, allowing the appellant an opportunity to present their case regarding the penalty levied under Section 271(1)(c). This decision ensures that all relevant facts and arguments are considered before making a final determination on the penalty.
Order Pronounced: In the open court on 1st August 2023.
Bench: Sh. N. K. Billaiya, Accountant Member and Ms. Astha Chandra, Judicial Member
Copy forwarded to:
Date of Hearing: 1st August 2023
Date of Order: 1st August 2023
The appellant, Mulayam Singh, filed an application on 27th December 2022 against the order dated 26th October 2022 by the NFAC, challenging the penalty levied by the ITO under Section 271(1)(c) for the assessment year 2008-09.
The tribunal considered the appellant’s arguments and decided to remit the issues back to the CIT(A) for verification and fresh adjudication, ensuring that the appellant is given an adequate opportunity to present their case.
The tribunal’s decision underscores the importance of due process and fairness in tax assessments, allowing taxpayers to correct errors and provide necessary documentation to substantiate their claims.
Overall, the ITAT’s order serves as a reminder of the importance of accurate and fair assessment procedures in tax matters, ensuring that all parties are given a fair chance to present their case and that decisions are made based on thorough verification and consideration of all relevant facts.
Mulayam Singh vs. ITO, Ward-1(4), Penalty under Section 271(1)(c) for AY 2008-09
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