2026 (3) TMI 1416 - HC - Income Tax

Alternate remedy and condonation of delay granted, with penalty order stayed pending appeal.

The writ petition was dismissed as withdrawn, with liberty to pursue the alternate appellate remedy. The appellate authority was directed to entertain the ... Transfer Pricing Officer jurisdiction to pass penalty orders - alternate remedy - As argued only the National Penalty Centre/ Faceless Assessment Centre that could have issued a Show Cause Notice and imposed penalty on the Petitioner under Section 271G of the I T Act. HELD THAT:- Petitioner, on taking instructions, stated that he would like to withdraw the above Writ Petition with liberty to avail of the alternate remedy. Since the issue whether the Transfer Pricing Officer would have jurisdiction to issue the penalty order is alive, and will be decided by the CIT(A) (in the Appeal proposed to be filed by the Petitioner), we direct that till the aforesaid Appeal is heard and disposed of, and for a period of four weeks thereafter, the impugned penalty order dated 31st July, 2025 shall remain stayed. Final conclusion: Writ Petition is dismissed as withdrawn with liberty to avail of the alternate remedy on matter of Transfer Pricing Officer jurisdiction to pass penalty orders. Outcome: Writ Petition dismissed as withdrawn with liberty to avail the alternate remedy. The appellate authority was directed to entertain the appeal if filed within three weeks by condoning the delay, and the impugned penalty order was stayed till disposal of the appeal and for four weeks thereafter.