DCIT Vs Pinac Stock Brokers Private Limited (ITAT Ahmedabad)
AO empowered to impose or enhance or reduce or cancel penalty by giving effect to order of higher authority or court
ITAT Ahmedabad held that section 275(1A) of the Act empowers AO to impose or enhance or reduce or cancel penalty pursuant to the quantum appeal before higher appellate authority or court by giving effect to the quantum order.
Facts- Revenue has preferred the present appeal solely on the ground that whether CIT(A) is correct in deleting the penalty levied u/s. 271(1)(c) holding that the issue has been decided in favour of appellant by the Hon’ble ITAT, consequential penalty u/s. 271(1)(c) levied by the Assessing Officer does not survive despite the fact that the decision of Hon’ble ITAT has been challenged and an appeal was filed before Hon’ble Gujarat High Court.
Conclusion- With due respect to the Tax Appeal pending before the Jurisdictional High Court, further Section 275(1A) of the Act provides that the Assessing Officer to impose or enhance or reduce or cancel penalty pursuant to the quantum appeal before Commissioner (Appeals) passed u/s. 246A or appeal before Appellate Tribunal passed u/s. 253 or appeal before High Court passed u/s. 260A or appeal before Supreme Court passed u/s. 261 or Revision order passed u/s. 263 of the Act by giving effect to the quantum order.
