ALLIANCE HOMES,KANNUR V. ASST. COMMISIONER OF INCOME TAX, KANNUR, KANNUR

ITA 233/COCH/2025

AI Insights

The case involves M/s. Alliance Homes appealing against the order of the Commissioner of Income Tax (Appeals), which dismissed their appeal concerning a penalty imposed under section 271D for violation of section 269SS of the Income-tax Act, 1961. The dismissal was based on the grounds that the appeal was infructuous, as the appellant had previously withdrawn another appeal related to a different penalty for the same assessment year, following a reassessment order by the High Court of Kerala. However, the Tribunal found that the appeal concerning the penalty under section 271D was independent of the reassessment and should be considered on its own merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315376 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL; SENIOR
• Assessee Lawyers: A.P.VINOD KUMAR; OBSERVING

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri George George K, Vice-President & Shri Inturi Rama Rao, Accountant Member ITA No.233/Coch/2025 :Asst.Year 2017-2018 M/s.Alliance Homes 1st Floor, Prestige Centre Opp : Sub Registrars Office Kannur – 670 001. PAN :AAMFA1781C. v. The Assistant Commissioner of Income-tax Kannur. (Appellant) (Respondent) Appellant by : Sri.A.P.Vinod Kumar, CA Respondent by : Smt.Leena Lal, Senior AR Date of Hearing :15.05.2025 Date of Pronouncement : 16.05.2025 O R D E R Per George George K, Vice-President : This appeal at the instance of assessee is directed against the order of the National Faceless Appeal Centre / Commissioner of Income Tax (Appeals) [hereinafter “CIT(A)”], dated 16.07.2024, passed u/s.250 of the Income-tax Act, 1961 (hereinafter “the Act”) The relevant assessment year is 2017-2018. 2. The order of the CIT(A) arises out of the order imposing penalty u/s.271D of the Act for violation of the provisions of section 269SS of the Act. The CIT(A) dismissed the appeal of the assessee by observing as under:- ITA No.233/Coch/2025. Alliance Homes. 2 “Further, for this very AY 2017-18 in case of another appeal filed by this appellant against AO's penalty order u/s 270A of the Act, the appellant had submitted in its response dated 25.06.2024 to this Appellate Authority stating that, \"Dear Sir as per the order of Hon. High court of Kerala our assessment of the AY 2017-18 was quashed and reassessment order was issued. A copy of reassessment order enclosed for your reference. In view of the above our appeal filed has become infructuous and may be treated as withdrawn. Thanking You APPELLANT.\". Under these circumstances the Appellant has decided to repeal the appeal filed before Commissioner of Income Tax and the appellant requested for withdrawal of the appeal against the AO's other penalty orders for this AY itself.” 3. We have heard rival submissions and perused the material on record. On perusal of the grounds raised before the CIT(A), we find that the assessee has challenged the imposition of penalty u/s.271D of the Act. The CIT(A) has wrongly dismissed the appeal of the assessee as infructuous and treated as withdrawn. The assessee’s letter is for withdrawal of the appeal pertaining to the penalty imposed u/s.270A of the Act, since the Hon’ble High Court had quashed the reassessment order. The penalty imposed u/s.271D of the Act is in violation of provisions of sec.269SS of the Act and the same is independent from the quantum assessment framed. The assessee’s letter is also placed on record for the withdrawal of the appeal and the same pertains to an appeal arising from the penalty imposed u/s.270A of the Act. In the light of the aforesaid reasons, the appeal is restored to the file of the CIT(A). The CIT(A) is directed to dispose of the same on merits. It is ordered accordingly. ITA No.233/Coch/2025. Alliance Homes. 3 4. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on this 16th day of May, 2025. Sd/- (Inturi Rama Rao) Sd/- (George George K) ACCOUNTANT MEMBER VICE-PRESIDENT Cochin; Dated : 16th May, 2025. Devadas G* Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT, Cochin. 4. The DR, ITAT, Cochin. 5. Guard File. Asst.Registrar/ITAT, Cochin "