No direct appeal lies to the Tribunal against section 271FA penalty; the proper remedy is before the appellate forum or by writ.

An appeal against a penalty order under section 271FA was held not maintainable before the ITAT because the Income-tax Act did not provide a direct appeal route to the Tribunal. The Tribunal noted that the assessee was advised to pursue the remedy indicated in the penalty notice before the Commissioner (Appeals) or, where appropriate, seek writ relief. As no statutory appeal lay to the Tribunal, it did not examine the merits of the penalty and dismissed the appeal in limine.

---

---

Issues: Whether an appeal against a penalty order passed under section 271FA of the Income-tax Act, 1961 was maintainable before the Tribunal.

Analysis: The Tribunal noted that the statute did not provide a direct appeal to the Tribunal against an order levying penalty under section 271FA. It observed that the assessee had been advised to pursue the remedy indicated in the penalty notice before the Commissioner (Appeals), and that, in the absence of a statutory appeal route to the Tribunal, the proper course was to approach the forum provided by law or seek writ relief. On that basis, the Tribunal did not enter into the merits of the penalty and held that the appeal itself could not be entertained by it.

Conclusion: The appeal was not maintainable before the Tribunal and was dismissed in limine.

---