Appeal Allowed Against Penalty for AY 2010-11

The Tribunal allowed the appeal against penalty proceedings under section 271(1)(c) for AY 2010-11. The penalty imposed by the Ld. CIT (Appeals) was set aside and remitted to the file of the Ld. CIT (A) for fresh consideration after the disposal of quantum proceedings, following the Tribunal's direction for a speaking order and granting the assessee a reasonable opportunity to be heard. The Department Representative did not object to this remittance. The appeal of the assessee was allowed, and the order was pronounced on 29th August 2018.

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Issues:
Appeal against penalty proceedings under section 271(1)(c) for AY 2010-11.

Analysis:
The appeal was filed against an order dated 02.11.2017 by the Ld. CIT (Appeals), Faridabad, imposing a penalty of Rs. 4,84,907 on the assessee. The Tribunal had previously set aside the matter to the file of the Ld. CIT (A) in the quantum proceedings, directing a speaking order to be passed after granting the assessee a reasonable opportunity of being heard. The counsel for the assessee argued that since the quantum appeal had been remitted, the penalty appeal should also be set aside. The Department Representative did not object, acknowledging the remittance of the matter in the quantum proceedings. Consequently, the Tribunal remitted the penalty appeal to the file of the Ld. CIT (A) to be decided afresh after the disposal of the quantum proceedings and in accordance with the law. As a result, the appeal of the assessee was allowed, and the order was pronounced on 29th August 2018.

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