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Judgment
PER C.N. PRASAD, J.M.
This is an appeal filed by the Assessee against the order of the Ld. CIT(Appeals)-NFAC, Delhi dated 27.02.2025 for the AY 2018-19 in sustaining the penalty levied u/s 271AAC(1) of the Act.
Heard rival contentions.
At the time of dictation, we noticed that the quantum appeal of the Assessee in ITA No.2294/Del/2025 order dated 24.09.2025 against the additions made in the assessment order passed u/s 147 r.w.s. 144B of the Act was restored to the file of the Assessing Officer to decide afresh after providing adequate opportunity to the Assessee. The relevant portion of the order of the Tribunal is as under:
“2.On hearing both the sides, we find that amongst other grounds on merits, the assessee has raised a ground that the assessee was not given an opportunity of hearing in accordance with the principles of natural justice. On going through the records, we find that the assessee’s case was reopened u/s 148 of the Act on the basis of cash deposits of Rs.90,000/- and cash withdrawals of Rs.1,97,09,500/- from Allahabad Bank and having received commission on brokerage of Rs.1,61,480/- from M/s Vakrangee Limited. However, the assessee failed to respond to the notices and assessment was completed u/s 147 r.w.s. 144 of the Act and as the assessee approached the Ld. CIT(A), the appeal was also dismissed in the absence of any submissions from the assessee. The case of the assessee is that the assessee is an agent and on account of his principle he used to receive cash which was deposited or withdrawn. The Ld. AR has submitted that the assessee was not aware of the notices being received on ITBA portal and for that reason, could not defend the case.
3.In the light of the aforesaid, for the ends of justice, the issues on merits are restored to the files of the AO to give the assessee a fresh opportunity of hearing and decide in accordance with law.”
Since the additions made in the assessment order passed u/s 147 r.w.s. 144B of the Act were restored to the file of the Assessing Officer the penalty levied u/s 271AAC(1) will not survive and therefore the penalty order passed by the Assessing Officer is set aside and restored to the file of the Assessing Officer and to decide in accordance with law after providing adequate opportunity to the Assessee.
In the result, appeal of the Assessee is allowed for statistical purpose.