Ravinder Kumar Jain Vs DCIT (ITAT Delhi)
Set-Aside Assessment Not a Licence to Review Past Decisions: Penalty Deleted-AO Cannot Revive Penalty on Income Already Accepted in Original Assessment – Fresh Penalty in Remand Proceedings Held Invalid
In this appeal, Assessee challenged the penalty sustained by CIT(A) arising from penalty u/s 271(1)(c). Tribunal observed that the additional income of ₹58,85,666 was voluntarily offered in the original return & AO, while completing the original assessment on 28.12.2007, had not initiated any penalty on this sum. AO, in the set-aside assessment u/s 143(3)/254 dated 02/03.09.2021, for the first time initiated penalty on this very amount, which Tribunal held as beyond the scope of set-aside proceedings, since AO cannot review or revisit issues that were never before Tribunal. Tribunal also noted that the addition of ₹2,25,000 in the set-aside assessment lacked any discussion, reasoning or satisfaction for initiating penalty. Holding that the penalty proceedings were jurisdictionally defective & devoid of any foundation, Tribunal deleted the penalty & allowed the appeal of Assessee.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is filed by the Assessee against the order of the Ld. CIT(Appeals)-24, New Delhi dated 07.02.2025 for the AY 2006-07 in sustaining the penalty levied u/s 271(1)(c) of the Act.
