AYIMAT KHAN,BHADRAK V. INCOME TAX OFFICER, BHADRAK

ITA 727/CTK/2025

AI Insights

The case involves Ayimat Khan, the appellant, who filed appeals against the penalties imposed for the assessment years 2015-2016 and 2017-2018 under sections 271(1)(c) and 271AAC(1) of the Income Tax Act, respectively. The penalties were initially levied by the Assessing Officer (AO) and confirmed by the CIT(A). The primary contention in the appeals was the delay in filing, which the appellant sought to condone, arguing that the quantum appeals had been restored to the AO for re-evaluation, which could potentially affect the penalties. The Tribunal found merit in the appellant's arguments, leading to the decision to delete the penalties.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 838369 (ITAT-CUTTACK)
• Duration Of Justice: 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-02-2026
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 11-12-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ASHIM KUMAR CHAKRABORTY
• Assessee Lawyers: CHITRASEN PARIDA
• Keywords: Set aside

Judgement Text

" आयकर अपीलȣय अͬधकरण, कटक Ûयायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.726 & 727/CTK/2025 (Ǔनधा[रण वष[ / Assessment Year : 2015-2016 & 2017-2018) Ayimat Khan, Jayanagar, Habibnagar, Dhamanagar, Bhadrak-756117 Vs ITO, Ward Bhadrak PAN No. :CJMPK 7544 J (अपीलाथȸ /Appellant) .. (Ĥ×यथȸ / Respondent) Ǔनधा[ǐरती कȧ ओर से /Assessee by : Shri Chitrasen Parida, Advocate राजèव कȧ ओर से /Revenue by : Shri Ashim Kumar Chakraborty, CIT-DR & Shri Vijay Singh, Sr. DR सुनवाई कȧ तारȣख / Date of Hearing : 18/02/2026 घोषणा कȧ तारȣख/Date of Pronouncement : 18/02/2026 आदेश / O R D E R Per Bench : These two appeals are filed by the assessee against the separate orders of the Ld.CIT(A), National Faceless Appeal Centre (NFAC), Delhi, both dated 21.11.2025 for the assessment years 2015-2016 & 2017-2018 arising out of the penalty levied u/s.271(1)(c) of the Act & u/s.271AAC(1) of the Act, respectively by the AO and confirmed by the ld. CIT(A). 2. It was submitted by the Ld.AR that the Ld.CIT(A) has dismissed the appeal of the assessee on account of delay in filing of the both the appeals. It was submitted by the Ld.AR that the quantum appeals in the case of the assessee has been restored to the file of the AO for readjudication in ITA No.231 & 232/CTK/2025, dated 14/08/2025. It was the prayer that the delay in filing of the appeal before the Ld.CIT(A) may be condoned and the Printed from counselvise.com ITA No.726&727/CTK/2025 2 penalties may be quashed, insofar as the quantum has already been restored to the file of the AO for readjudication. 3. In reply, the Ld. CIT DR and the Sr.DR vehemently supported the order of the AO and CIT(A). 4. We have considered the rival submissions. As it is noticed that the quantum issues in regard to both the assessment years 2015-16 and 2017- 18 on the basis of which the penalty has been levied, have been restored to the file of the AO for readjudication, the very legs on which the penalty stood no more survive. This being so, in the interest of justice, the delay in filing of the appeal before Ld.CIT(A) is condoned and the penalty is levied by the AO and has confirmed by the Ld.CIT(A) for both the assessment years under consideration stands deleted. The revenue is at liberty to initiate penalty proceedings, if so required in the set aside proceedings. 5. In the result, both appeals of the assessee are partly allowed Order dictated and pronounced in the open court on 18/02/2026. Sd/- (MADHUSUDAN SAWDIA) Sd/- (GEORGE MATHAN) लेखा सदèय/ ACCOUNTANT MEMBER ÛयाǓयक सदèय / JUDICIAL MEMBER Ǒदनांक Dated 18/02/2026 Prakash Kumar Mishra, Sr.P.S. आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy of the Order forwarded to : आदेशानुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलȣय अͬधकरण, कटक/ITAT, Cuttack 1. अपीलाथŎ / The Appellant - 2. ŮȑथŎ / The Respondent- 3. आयकर आयुƅ(अपील) / The CIT(A), 4. आयकर आयुÈत / CIT 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, कटक / DR, ITAT, Cuttack 6. गाड[ फाईल / Guard file. स×याͪपत ĤǓत //True Copy// Printed from counselvise.com "