Case Number: ITA 1762/DEL/2020
Appellant: Surya Kirti Chand Thapar, New Delhi
Respondent: ITO Ward – 26(2), New Delhi
Assessment Year: 2010-11
Case Filed On: 2020-10-23
Order Type: Final Tribunal Order
Date of Order: 2023-07-19
Pronounced On: 2023-07-19
This appeal, numbered ITA 1762/DEL/2020, was filed by Surya Kirti Chand Thapar against the order dated 21.09.2020 of the Commissioner of Income Tax (Appeals)-36, Delhi, relating to the assessment year 2010-11. The appellant contested the imposition of penalty under section 271(1)(c) of the Income Tax Act, 1961 by the ITO Ward – 26(2), New Delhi.
The case was heard by the Delhi Bench ‘G’ of the Income Tax Appellate Tribunal (ITAT) on July 19, 2023, with the order pronounced on the same day. The bench comprised Judicial Member Sh. Kul Bharat and Accountant Member Sh. Pradip Kumar Kedia.
The primary ground of appeal was the imposition of a penalty of Rs. 5,27,185 under section 271(1)(c) of the Act on the additions made in the quantum proceedings towards non-genuine cash deposits.
The appellant, represented by Shri Shantanu Jain, Advocate, submitted that the quantum proceedings were still pending before the First Appellate Authority (CIT(A)). As the penalty imposed is contingent on the outcome of the quantum proceedings, it was argued that the penalty proceedings should be deferred until a final decision is made in the quantum proceedings.
The respondent, represented by Shri Anuj Garg, Senior Departmental Representative, maintained the correctness of the penalty imposed by the Assessing Officer but did not dispute the fact that the quantum proceedings were still pending.
After considering the submissions of both parties, the tribunal decided to remit the matter back to the file of the CIT(A). The CIT(A) was directed to determine the correctness of the imposition of penalty under section 271(1)(c) afresh, taking into account the outcome of the quantum proceedings either before him or the ITAT. The tribunal emphasized that a reasonable opportunity should be provided to the assessee to present his case.
In conclusion, the tribunal allowed the appeal of the assessee for statistical purposes and remanded the case back to the CIT(A) for fresh adjudication based on the outcome of the pending quantum proceedings.
The tribunal’s order was pronounced in the open court on July 19, 2023, by Judicial Member Sh. Kul Bharat and Accountant Member Sh. Pradip Kumar Kedia.
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Surya Kirti Chand Thapar vs. ITO Ward 26(2), New Delhi – 2010-11 – Penalty Proceedings
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