Can Ld. CIT(A) impose penalty when final assessment order has been framed by the AO?

The Delhi Income Tax Appellate Tribunal has ruled that the Commissioner of Income Tax (Appeals) [CIT(A)] cannot impose a penalty when the final assessment order has already been made by the Assessing Officer (AO). In this case, the CIT(A) had reduced a penalty, but the Tribunal found this action unsustainable. Consequently, the penalty levied was deleted, and the assessee's appeal was allowed.

IN THE INCOME TAX APPELLATE TRIBUNAL
(DELHI BENCH ‘G’ : NEW DELHI)
(THROUGH VIDEO CONFERENCE)
BEFORE SHRI O.P.KANT, ACCOUNTANT MEMBER
and
SHRI KULDIP SINGH, JUDICIAL MEMBER
ITA No.6310/Del./2017
ASSESSMENT YEAR : 13-14

Seema Anand

9-66, Ground Floor,

Chandigarh

New Delhi-110015

(PAN :ASTPA9963B)

(APPELLANT)

VS

ITO,

Ward-49(1),

New Delhi

(RESPONDENT)

ASSESSEE BY : None
REVENUE BY : Shri Prakash Dubey, Sr. DR
Date of Hearing : 08.07.2021
Date of Order : 27.07.2021
O R D E R

1. Return of income filed by the assessee for A.Y. 2013-14 was subjected to scrutiny and consequently notice u/s 143(2) was issued for 12.09.2014 and 07.08.2015 but none appeared on behalf of the assessee but subsequently representative of the assessee filed some details and continued to appear on numerous dates fixed by the Assessing Officer but again failed to attend the proceedings on four occasions.

2. Assessee carried the matter before Ld. CIT(A) by way of filing the appeal who has accepted the appeal by reducing the penalty of Rs. 40,000/- from 80,000/-. Feeling aggrieved with order passed by the Ld. CIT(A), assessee has come up before the Tribunal by way of filing the present appeal.

3. We have heard the ld. Departmental Representative for the revenue to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case.

4. In view of what has been discussed above impugned order passed by ld. CIT(A) is not sustainable, hence set aside and penaltylevied / confirmed stands deleted. Consequently, appeal filed by the assessee is allowed.

Order pronounced in open court on this 27TH day of July, 2021.

Please find attached the enclosed file for the full judgement