Penalty cannot be enhanced in de novo remand proceedings beyond the original quantum where Revenue did not challenge it separately.

In de novo proceedings after remand, penalty cannot be enhanced to the prejudice of the appellant beyond the quantum fixed in the earlier order, particularly where the Revenue did not separately challenge that original penalty. Applying this principle, the enhanced penalty imposed in the remand order was held unsustainable and was reduced back to the earlier amount. The appeal was allowed with consequential relief, if any.

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Issues: Whether the penalty could be enhanced in de novo proceedings after remand.

Analysis: The appeal arose only against the enhanced penalty imposed in the de novo order. The Tribunal followed prior decisions holding that, in remand proceedings, the assessee cannot be placed in a worse position than before the appeal, and the penalty already imposed in earlier proceedings could not be increased when the Revenue had not separately challenged that quantum.

Conclusion: The enhancement of penalty was not sustainable. The penalty was reduced to the earlier amount and the appeal was allowed with consequential relief, if any.

Ratio Decidendi: In de novo proceedings, penalty cannot be enhanced to the prejudice of the appellant beyond the position reached in the earlier order, particularly where the Revenue has not challenged the original quantum of penalty.

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