2022 (6) TMI 475 - Income Tax

Head Note / Extract:
Revision u/s 263 - Levy of penalty under section 271(1)(c) - assessee had disclosed the income only after the survey was conducted on the premise of the assessee company and the return of income was filed by the assessee only after the receipt of the notice under section 148 - AO allowed the exemption under section 54G of the Act by passing the assessment order under section 147 r.w.s. 143(3) - PCIT has issued a notice under section 263 that the assessment order passed by the Assessing Officer dated 24.03.2016 is erroneous and prejudicial to the interest of Revenue on the ground that the Assessing Officer has not examined the claim made by the assessee under section 54G - HELD THAT:- By considering the detailed reply filed assessee, the ld. PCIT set aside the assessment order passed by the Assessing Officer dated 24.03.2016 and directed him to examine the claim made under section 54G of the Act and redo the assessment afresh in accordance with law after giving due opportunity of being heard to the assessee by order dated 27.03.2018. The very revision order passed under section 263 of the Act by the ld. PCIT dated 27.03.2018 was subject matter in appeal before the Tribunal. Vide order in [2022 (5) TMI 1090 - ITAT CHENNAI] the Tribunal upheld the revision order passed under section 263 of the Act. In view of the above, the penalty levied by the Assessing Officer under section 271(1)(c) of Act and confirmed by the ld. CIT(A) cannot be adjudicated in the present penalty appeal. Therefore, we set aside the order passed by the ld. CIT(A) and remit the matter back to the file of the Assessing Officer to take appropriate action after passing the consequential order in pursuance to the order passed by the ld. PCIT under section 263 of the Act dated 27.03.2018. Thus, the ground raised by the assessee is allowed for statistical purposes.