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Judgment
PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:
This appeal is filed by the Assessee against the order of Ld. CIT(A) dated 30.Dec.2025 arising from the penalty order u/s. 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as the "Act") dated 02.03.2024 passed by the Assessment Unit, Income Tax Department (hereinafter referred to as the "AO") for the A.Y. 2015-16.
None appeared on behalf of the assessee. We accordingly decided to hear the case with the assistance of the ld DR. The ld DR appraised us with facts of the case and materials on record. The Assessee has raised the following grounds of appeal:
“1)First ground is that the CIT(A) has erred in confirming the penalty merely on the ground, that the quantum appeal has been dismissed due to delay in filing the appeal.
2)Second ground is that the CIT(A) has further erred in not adjudicating any of the grounds of the assessee.
3)Third ground is that the Any other ground before OR at the time of hearing.”
Brief facts of the case are that the assessee is an individual and not filed his ITR for the A.Y. 2015-16. Subsequently, the case was re-opened u/s. 147 of the Act by issue of notice u/s 148 based on the information with the department that the assessee made debit and credit entries of Rs.8,82,18,426/- in his bank accounts maintained with AXIS Bank and Rs.6,49,94,738/- in the bank account maintained with ICICI Bank during the year under consideration. The assessment was completed u/s. 147 r.w.s. 144 of the Act on 25.05.2023 by assessing the total income at Rs.14,98,33,014/- after making addition u/s. 69A of the Act.
The AO also initiated penalty proceedings u/s. 271(1)(c) of the Act by issue of notice for furnishing of concealment of income. During penalty proceedings, the AO issued notices dated 25.05.2023, 10.08.2023, 18.12.2023 & 26.12.2023 to the assessee. In absence of any response, the AO passed the penalty order u/s. 271(1)(c) by imposing a penalty of Rs.5,09,28,241/- (being 100% of tax sought evaded) on 02.03.2024.
Aggrieved by the penalty order u/s. 271(1)(c) of the Act dated 02.03.2024, the assessee preferred appeal before the ld. CIT(A). The ld. CIT(A) dismissed the appeal of the assessee by observing as under:
“On perusal of the details available on ITBA portal, it is seen that the appellant also filed quantum appeal for this A.Y. 2015-16 vide appeal no. NFAC/2014-15/10318278 dated 21.02.2024. The said appeal was dismissed by the CIT(A)-National Faceless Appeal Centre, Delhi vide order u/s. 250 of the Act in DIN No. ITBA/NFAC/S/250/2025-26/1084218088(1) dated.30.12.2025. As the quantum appeal of the appellant was dismissed by the CIT(A), NFAC-Delhi, the present appeal against the penalty order u/s. 271(1)(c) of the Act stands dismissed.”
Aggrieved by the order of the ld. CIT(A), the assessee is now in appeal before us. Before us, ld. DR appraised us that vide separate order dated 03.09.2025 in ITA No.1480/Del/2026 for impugned assessment year 2015-16 wrt quantum assessment, the ITAT has now condoned the aforesaid delay and restored the matter to the file of AO for denovo assessment. On merits therefore the ld. DR relied on the order of the authorities below.
We have heard the rival submissions and perused the material available on record. We find that the ld. ITAT in ITA No.1480/Del/2026 has set aside quantum appeal of AY 2015-16 to the file of the CIT(A) for adjudication afresh. We therefore, also set aside the penalty order and remit the matter back to the file of the ld. CIT(A) for fresh adjudication. The CIT(A) is directed to accord three effective opportunities to the assessee and assessee is likewise directed to avail the opportunities and submit documents/evidence as required by the CIT(A). The appeal of the assessee is decided in aforesaid terms.
In the result, appeal filed by the Assessee in ITA 1623/Del/2026 is allowed for statistical purposes.