Case Number: ITA 2119/DEL/2019
Appellant: Anil Jindal, Faridabad
Respondent: DCIT Central Circle – II, Delhi
Assessment Year: 2013-14
Result: 2013-14
Case Filed On: 2019-03-11
Order Type: Final Tribunal Order
Date of Order: 2022-04-04
Pronounced On: 2022-04-04
This appeal by Anil Jindal is directed against the order dated 29/12/2018 in appeal No. 432/CIT(A)-3/GGN/2017018 passed by the learned Commissioner of Income Tax (Appeals)-3, Gurgaon, concerning the assessment year 2013-14. The appellant contested the penalties imposed following an assessment that was influenced by a search and seizure operation conducted on 09.05.2012.
The appellant filed a return of income on 23.07.2013 declaring an income of Rs.1,63,09,510. Following the search, the assessment under section 153B read with section 143(3) of the Income-tax Act, 1961, was completed at an income of Rs.2,23,14,890. During the proceedings, additions were made for unexplained jewellery and cash found during the search, which were upheld by the CIT(A) leading to subsequent penalty proceedings under section 271AAA.
The primary grievance of the appellant pertained to the penalties based on these sustained additions. After the initial appeal, where the additions were contested, the Tribunal in a prior ruling dated 08.04.2021 remanded the matter back to the Assessing Officer for a fresh assessment, citing the need for a thorough reevaluation after considering new evidence presented by the appellant.
In the proceedings, the appellant argued that the penalties were no longer sustainable given that the additions which formed their basis were under reevaluation. The Departmental Representative, however, supported the decision of the lower authorities, arguing the original findings were justified.
The Tribunal noted the ongoing reevaluation of the additions and decided that it would be just to remand the penalty proceedings as well. It was held that the penalty appeal would be reconsidered after the finalization of the reassessment currently underway. This decision aims to ensure that penalties, if any, are aligned with the findings of the forthcoming assessment order.
The Tribunal directed the Assessing Officer to undertake fresh penalty proceedings post the completion of the new assessment, ensuring the appellant is granted a fair opportunity to present his case. This move underscores the Tribunal’s commitment to procedural fairness and the rights of the taxpayer to contest and clarify tax assessments and penalties.
The appeal by Anil Jindal was thus allowed for statistical purposes, with directions for a comprehensive reevaluation of both the quantum and penalty aspects of the case. The Tribunal’s order facilitates a thorough review, potentially altering the landscape of the penalties initially imposed.
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’, NEW DELHI
BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER
ITA No.2119/Del/2019
Assessment Year: 2013-14
Anil Jindal, C/o RRA Taxindia, D-28, South Extension Part-I, Delhi. PAN : AAOPJ9776G (Appellant) Vs DCIT, Central Circle-II, Delhi. (Respondent)
Order pronounced in the open court on 04/04/2022.
Anil Jindal vs. DCIT Central Circle-II, Delhi: Penalty Case for AY 2013-14
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