2024 (12) TMI 821

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.... of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Years 2017-18 & 2018-19 respectively. 2. Brief facts are that the assessment order u/s. 143(3) r.w.s. 153A was passed on 31-12-2019 for the Asst. Year 2017-18 wherein total income assessed at Rs.23,87,99,020/- after making addition to the returned income. As there is difference between the returned and assessed income, the A.O. initiated penalty proceedings u/s. 271AAB(1A)(b) of the Act. In the meanwhile, assessee filed appeal before Ld. CIT(A) on the quantum addition, wherein Ld. CIT(A) confirmed the addition to Rs.4,71,46,684/- only. Thus the Assessing Officer levied penalty of Rs.2,80,88,610/- being 60% of addition confirmed by Ld. CIT(A) u/....

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.... Ld. ITAT has deleted the addition. 6. Unexplained money u/s 69A 45,24,000 The Ld. CIT(A) has restricted the addition at Rs.16,40,000/- The Ld. ITAT has confirmed addition amounting to Rs.16,40,000/- on this ground vide para 26 of ITAT order 7 Addition on account of unaccounted money u/s 69A 3,91,663/- The Ld. CIT(A) has confirmed addition on this ground. The Ld. ITAT has confirmed addition on this ground vide para 27 of ITAT order. 4. The Assessing Officer had given effect to ITAT's order and determined the assessed income as Rs.35,75,250/- vide order dated 25-04-2024. Thus the Ld. CIT(A) deleted the penalty of Rs.2,64,47,726/- (which the quantum deleted by ITAT) and confirmed the balance penalty of Rs.18,4....

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..... 271AAB of the Act. 8. Per contra the Ld. Counsel for the assessee supported the order passed by the Ld. CIT(A). 9. We have given our thoughtful consideration and perused the materials available on record. In our considered view, these appeals filed by the Revenue are frivolous appeals, since there is built in provision available u/s. 275(1A) of the Act, which reads as follows: "275(1A) In a case where the relevant assessment or other order is the subject matter of an appeal 33[to the Joint Commissioner (Appeals) or] to the Commissioner (Appeals) under section 246 or section 246A or an appeal to the Appellate Tribunal under section 253 or an appeal to the High Court under section 260A or an appeal to the Supreme Court under ....

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....s passed:" 10. As per Section 275(1A), the Assessing Officer is empowered in passing an order imposing or enhancing or reducing or cancelling penalty or dropping the proceedings for the imposition of penalty on the basis of assessment as revised by giving effect to the orders passed by the Joint Commissioner (Appeals) or the Commissioner (Appeals) or the Appellate Tribunal or the High Court or the Supreme Court or Revision Order passed u/s. 263 or 264 of the Act, by giving reasonable opportunity of hearing to the assessee and within six months from the receipt of the said appellate or revision order. 11. Thus in our considered view, in the event of the order passed by the Tribunal is modified by Hon'ble High Court of Gujarat, the Asse....