2026 (3) TMI 707

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....PER R.K. PANDA, VP: This appeal filed by the assessee is directed against the ex-parte order dated 18.08.2025 of the Ld. CIT(A) / NFAC, Delhi relating to assessment year 2018-19 confirming the penalty of Rs. 35,39,370/- levied by the Assessing Officer u/s 270A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). 2. Facts of the case, in brief, are that the assessee is an indiv....

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....t be brought to tax. In absence of any proper explanation from the side of the assessee, the Assessing Officer completed the assessment u/s 147 r.w.s. 143(3) r.w.s. 144B of the Act determining the total income of the assessee at Rs. 87,56,480/- by treating Rs. 53,60,000/- as short term capital gain and treating the time deposits of Rs. 33 lakhs as unexplained investment u/s 69 of the Act. The Asse....

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....sessee at the outset submitted that the quantum appeal of the assessee was pending before the Ld. CIT(A) / NFAC and the assessee was under the impression that once the quantum is deleted, the penalty does not survive, therefore, there was no compliance from the side of the assessee. He submitted that in the interest of justice the penalty issue be restored to the file of the Ld. CIT(A) / NFAC with....

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....ould have been decided only after the quantum appeal is decided. Under these circumstances and considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. CIT(A) / NFAC with a direction to adjudicate the appeal on the issue of levy of penalty after the quantum appeal is decided. Needless to say the Ld. CIT(A) / NFA....