Sangeeta Kathuria Vs ITO (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi, allowed the assessee’s appeal for statistical purposes by setting aside the penalty order passed under Section 271(1)(B) of the Income-tax Act and remitting the matter to the Assessing Officer (AO) for fresh adjudication. During the hearing, the assessee submitted that the related quantum appeal for the same assessment year had already been set aside by the Tribunal and restored to the AO for de novo adjudication.
The Departmental Representative did not dispute this submission. The Tribunal referred to its earlier order dated 15.05.2025 in the quantum appeal, where it had held that the assessee had not filed the original return under Section 139 or in response to a notice under Section 148. Consequently, there was no admission of income and no advance tax liability, making Section 249(4)(b) inapplicable.
The Tribunal had also observed that the assessment was framed ex parte and restored the matter to the AO with directions to provide the assessee a reasonable opportunity of being heard. Since the issues in the quantum appeal had already been remitted for fresh adjudication, the Tribunal held that the connected penalty proceedings should also be set aside and restored to the AO for decision in accordance with law. Accordingly, the appeal was allowed for statistical purposes.
