This case summary provides a comprehensive overview of the appeal ITA 4716/DEL/2019 filed by Vatsal Hotels Pvt. Ltd. against the ACIT Circle-26(1), New Delhi for the assessment year 2013-14. The appeal was filed on 24th May 2019 and concluded with a final tribunal order on 4th February 2020.
Vatsal Hotels Pvt. Ltd., the appellant, is represented by Sh. Akhilesh Kumar, Adv., while the respondent, ACIT Circle-26(1), New Delhi, is represented by Sh. M. Barnwal, Sr. DR. The appellant’s case pertains to the assessment year 2013-14 and was initially directed against the order of the ld. CIT(A)-28, New Delhi dated 29th March 2019.
The appeal was filed by Vatsal Hotels Pvt. Ltd. challenging the order of the ld. CIT(A) dated 29th March 2019. The primary grounds for the appeal included the contention that the penalty was sustained without specifying the specific limb under which the assessee was presumed to be in default. The appellant argued that this was contrary to the law laid down in the case of Manjunath Cotton and Ginning Factory (2013) 359 ITR 565 (Karnataka) and approved by the hon’ble Apex Court in the case of SSA’s Emerald Meadows.
The case was scheduled for hearing on 31st January 2020. During the hearing, the arguments of both parties were heard, and the material available on record was perused. The quantum appeal in the instant case had been previously decided by the Co-ordinate Bench of ITAT in ITA No. 7696/Del./2018, which had remanded the matter back to the file of the Assessing Officer for adjudication on the core issue after affording an opportunity to the assessee.
Given the pending outcome in the quantum proceedings, the penalty levied by the Assessing Officer did not survive at this juncture. Therefore, the tribunal decided to remand the penalty order back to the file of the Assessing Officer to alter, modify, amend, or vary the penalty depending upon the outcome of the quantum proceedings.
The tribunal, comprising Ms. Sushma Chowla, Vice President, and Dr. B.R.R. Kumar, Accountant Member, allowed the appeal for statistical purposes. The final order was pronounced on 4th February 2020, in the open court.
The appeal ITA 4716/DEL/2019 filed by Vatsal Hotels Pvt. Ltd. was remanded back to the Assessing Officer for reconsideration of the penalty in light of the outcome of the quantum proceedings. This case underscores the importance of ensuring that penalties are levied with proper justification and in accordance with established legal principles.
By Order, Assistant Registrar
Vatsal Hotels Pvt. Ltd. vs. ACIT Circle-26(1) – Penalty Appeal and Remand
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