Kamlesh Kumar Rathi Vs ACIT (ITAT Delhi)
In Kamlesh Kumar Rathi Vs ACIT, the Income Tax Appellate Tribunal (ITAT) Delhi addressed an appeal concerning a penalty of ₹64,20,000 levied under Section 271AAB of the Income Tax Act, 1961. The penalty stemmed from an assessment order where an unexplained investment addition of ₹5.37 crore was made. Upon appeal, the CIT(A) reduced the addition to ₹1.07 crore, which was further contested by the assessee before the Tribunal. The ITAT had earlier remanded the quantum addition to the Assessing Officer (AO) for fresh adjudication.
The ITAT held that since the quantum addition was under reconsideration, the penalty proceedings based on the earlier addition would not survive. Consequently, the penalty order and the corresponding CIT(A) order were set aside. However, the ITAT granted liberty to the AO to initiate fresh penalty proceedings after resolving the quantum addition, ensuring compliance with legal provisions. This decision emphasizes the interdependence of quantum and penalty proceedings and underscores the need for due process in reassessment cases.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals)-XXVI, New Delhi [“Ld. CIT(A)” for short], dated 16/10/2019 for the Assessment Year 2015-16.
