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Judgment
PER MANISH AGARWAL, AM:
This appeal is filed by the Assessee against the order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [ld. CIT(A)] dated 15.01.2026 u/s 250 of the Income Tax Act, 1961 (“the Act” in short) arising out of the penalty order passed u/s 271AAC(1) of the Act dated 09.08.2024 for Assessment Year 2019-20.
Heard both the parties and perused the materials available on record. It is observed that the present appeal is filed against the levy of penalty u/s 271AAC(1) of the Act whereas the assessment order passed u/s 147 r.w.s144 read with section 144B of the Act dated 19.02.2024 has already been set aside by the Ld. CIT(A) to the file of the AO for fresh consideration in terms of the order passed u/s 250 of the Act dated 03.03.2025. As the order in which the present penalty proceedings were initiated has been set aside to the AO for fresh assessment, the consequent penalty proceedings has no legs to stand and, therefore, penalty so levied u/s 271AAC (1) of the Act is hereby deleted. However, the AO is at liberty to re-initiate the penalty proceedings u/s 271AAC(1) of the Act, if the circumstances suggested so in the set aside assessment proceedings. With this appeal of the assessee is allowed.
In the result, the appeal of the Assessee is allowed.