The Kerala High Court directed to revise the penalty imposed under the Income Tax Act, 1961 as a fresh assessment order was passed without revising the penalty proceedings. The Income Tax Appellate Tribunal had modified the assessment orders and remanded the matter to the assessing officer vide order for passing a fresh assessment order.
P M Abdul Nazeer, the petitioner filed the writ petition for quashing penalty orders passed by the respondent against the petitioner in respect of the assessment years 2008-09 to 2014-15 under Sections 271(1)(c) and 271AAB of the Income Tax Act, 1961.
The assessment order in respect of the assessment years 2008-09 to 2014-15 was passed on 31.03.2016 and for a penalty, proceedings show cause notices were issued under Section 271(1)(c) for the assessment years 2008-09 to 2013-14 and for the assessment year 2014-15, notice under Section 271AAB was issued.
Thepetitioner-assessee had filed appeals against the said assessment orders before the CIT(A). During the pendency of the appeals before the CIT(A), the penalty proceedings were kept in abeyance. The CIT (A) has vide common order dismissed the appeals affirming the assessment orders.
Since the appeals were dismissed, the penalty proceedings were revived and the petitioner was issued with notices. The petitioner has approached the Income Tax Appellate Tribunal. The Income Tax Appellate Tribunal had modified the assessment orders and remanded the matter to the assessing officer vide order for passing a fresh assessment order. The counsel for the petitioner submitted that on remand, a fresh assessment order can be passed andin view of the fresh assessment orders passed, the penalty orders may be revised.
A single judge bench of Justice Dinesh Kumar Singh disposed of the present writ petition with a direction to the respondent to revise the penalty orders in light of the fresh/revised assessment orders passed regarding the assessment year 2008-09 to 2014-15 on remand. It was held that the petitioner should be afforded an opportunity of hearing as provided under Section 75(1)A before revising the penalty orders.
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