BALDEV SINGH,JASWAN KANGRA, HIMACHAL PRADESH V. INCOME TAX OFFICER WARD, NURPUR, NURPUR, DISTT. KANGRA, HIMACHAL PRADESH

ITA 277/CHANDI/2025

AI Insights

The case involves Shri Baldev Singh, who appealed against the penalties imposed by the Income Tax Officer, Ward Nurpur, for the assessment year 2017-18. The penalties were levied for not maintaining prescribed books of accounts and failing to get the accounts audited, as his turnover exceeded Rs. 1 Crore. The Commissioner of Income Tax (Appeals) upheld these penalties, leading to the current appeals. The Tribunal decided to set aside the penalties and remand the case back to the Assessing Officer, considering the ongoing quantum assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 716715 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 24-02-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN LD.
• Assessee Lawyers: S ASHOK GOYAL; SIFATPREET SINGH
• Keywords: Set aside
• Section: 147; 144

Judgement Text

"1 ITA Nos. 276 & 277/Chandi/2025 Assessment Year: 2017-18 IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHANDIGARH BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपीलसं./ ITA No.276/CHANDI/2025 (िनधाŊरण वषŊ / Assessment Year: 2017-18) & 2. आयकरअपीलसं./ ITA No.277/CHANDI/2025 (िनधाŊरण वषŊ / Assessment Year: 2017-18) Shri Baldev Singh Village Dadoa, Post Office Bari Tehsil Jaswan, Kangra (HP) 176501 बनाम/ Vs. ITO-Ward Nurpur Near Chugan Baxar Teshsil Nurpur (HP) -176202 ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. BAAPS-3522-A (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : S/Shri Ashok Goyal and Sifatpreet Singh (CAs) – Ld. ARs ŮȑथŎकीओरसे/Respondent by : Shri Vivek Vardhan (Addl. CIT) – Ld. Sr. DR सुनवाई की तारीख / Date of Hearing : 18-08-2025 घोषणा की तारीख / Date of Pronouncement : 18-08-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. In these twin appeals, the assessee assails levy of penalty of Rs.25,000/- u/s 271A and penalty of Rs.1,33,396/- u/s 271B of the Act for non-maintenance of books of accounts and failure to get the accounts audited respectively. The impugned orders have been passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] both dated 31-01-2025. Having Printed from counselvise.com 2 ITA Nos. 276 & 277/Chandi/2025 Assessment Year: 2017-18 heard rival submissions and upon perusal of case records, the appeals are disposed-off as under. 2. The assessee has been assessed for AY 2017-18 on best judgment basis u/s 147 r.w.s. 144 of the Act on 23-08-2021. The Ld. AO assessed income of Rs.10.40 Lacs. It was noted that the assessee’s turnover had exceeded Rs.1 Crores but the assessee did not maintain prescribe books of accounts as required u/s 44AA. Consequently, Ld. AO imposed impugned penalties u/s 271A and 271B for non-maintenance of books of accounts as well as for failure to get the accounts audited respectively. The Ld. CIT(A) confirmed both the penalties against which the assessee is in further appeal before us. 3. The Ld. AR advanced argument and stated that the assessee was running a milk-booth on commission basis. Therefore, only commission income would constitute turnover of the assessee. It has also been submitted that the quantum assessment has already been restored back by first appellate authority to Ld. AO for fresh assessment. 4. Considering the above stated facts, since quantum assessment has already been restored back to Ld. AO which would have material bearing on fate of impugned penalties, we deem it fit to set aside both the orders and restore the issue of penalties back to the file of Ld. AO for fresh consideration in the light of quantum assessment so framed against the assessee. Printed from counselvise.com 3 ITA Nos. 276 & 277/Chandi/2025 Assessment Year: 2017-18 5. Both the appeals stand allowed for statistical purposes. Order pronounced on 18-08-2025. Sd/- Sd/- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 18-08-2025. आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "