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


Quick Summary
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.

Court :
ITAT Delhi

Brief :
Appellant Seema Anand, New Delhi (hereinafter referred to as 'the assessee'), by filing the present appeal sought to set aside the impugned order dated 16.08.2017 passed by the Commissioner of Income-tax (Appeals)-17, New Delhi.

Citation :
ITA No.6310/Del./2017

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

FAQ :

No, according to the Delhi ITAT ruling, the CIT(A) cannot impose a penalty when the final assessment order has already been framed by the Assessing Officer.

The Tribunal set aside the order passed by the CIT(A), deleted the penalty levied, and allowed the appeal filed by the assessee.

The original penalty amount was Rs. 80,000/-, which the CIT(A) had reduced to Rs. 40,000/-.

This judgement relates to Assessment Year 2013-14.

 
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I simplify complex income tax, TDS, banking, and investment updates into practical insights for taxpayers, salaried professionals, pensioners, and senior citizens. I regularly write on ITR filing, tax compliance, savings schemes, and the latest financial rule changes in India.

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