BHARAT NAMDEV PATIL,PUNE V. INCOME TAX OFFICER WARD 14(1), PUNE

ITA 2169/PUN/2024

AI Insights

The case involves Bharat Namdev Patil, the appellant, who faced a penalty under section 271AAC(1) of the Income Tax Act following an assessment for the year 2020-21. The penalty was imposed after the assessee could not substantiate an exempt agricultural income claim of Rs.30,00,000, which was added to his taxable income. Initially, the CIT(A) upheld the penalty, but the Tribunal later restored the quantum addition issue to the CIT(A) for fresh consideration. Consequently, the Tribunal also restored the penalty issue to the CIT(A) for re-evaluation, aligning with the decision on the quantum addition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474232 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHILPA N. C
• Keywords: Earning of tax free income

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2169/PUN/2024 िनधाᭅरण वषᭅ / Assessment Year : 2020-21 Bharat Namdev Patil, Sr. No.65, Behind Ashok Leyland Workshop, Katraj Mumbai Bypass, Ambegaon, Pune- 411046. PAN : ALLPP8905H Vs. ITO, Ward-14(1), Pune. Appellant Respondent आदेश / ORDER PER MANISH BORAD, AM: This appeal filed at the instance of assessee is directed against the order of Ld. CIT(A)/NFAC dated 29.07.2024 which is arising out of the assessment order for Assessment Year 2020-21 framed on 23.09.2022 by the Jurisdictional Assessing Officer. 2. When the case was called for, none appeared on behalf of the assessee. However, Ld. Departmental Representative fairly Assessee by : None Revenue by : Ms. Shilpa N. C. Date of hearing : 23.01.2025 Date of pronouncement : 10.02.2025 ITA No.2169/PUN/2024 2 submitted that the instant appeal is against the levy of penalty u/s 271AAC(1) of the Act but the quantum appeal already stands restored by this Hon’ble Tribunal to Ld. CIT(A)/NFAC by a order dated 19.11.2024 vide ITA No.1726/PUN/2024 for Assessment Year 2020-21. He therefore requested that the present appeal also deserves to be restored to the file of Ld. CIT(A)/NFAC. Considering this fact, we decide to adjudicate this appeal ex-parte qua the assessee with the able assistance of Ld. Departmental Representative and available records. 3. We have heard Ld. Departmental Representative and perused the record placed before us. We observe that the assessee is an individual and income of Rs.16,37,900/- and agricultural income of Rs.30,00,000/- declared in the return of income for Assessment Year 2020-21. During the course of scrutiny proceedings, the assessee could not substantiate the claim of exempt income of Rs.30,00,000/- and the same was added in the hands of the assessee. Thereafter, penalty proceedings u/s 271AAC(1) were carried out and penalty of Rs.2,31,750/- levied at the rate of 10% of the tax on unexplained income of Rs.30,00,000/-. We further notice that when ITA No.2169/PUN/2024 3 the assessee failed to succeed on the quantum addition before Ld. CIT(A)/NFAC, he thereafter preferred appeal before this Tribunal and vide order dated 19.11.2024 (supra), this Tribunal restored the issue of quantum addition to the file of Ld. CIT(A)/NFAC for fresh adjudication observing as under :- “7. We have heard Ld. Counsels from both the sides and perused the material available on record including the copy of e-submission online furnished by the assessee on 20.07.2024 before Ld. CIT(A)/NFAC. We find that Ld. CIT(A)/NFAC has decided the appeal under impression that the appellant-assessee has not complied with hearing notice and has not furnished any evidence/written submission in support of grounds of appeal. Whereas in-fact the appellant-assessee has filed written submission documents/evidences on 20.07.2024 and the copy of e-acknowledgement of the same is also filed before the Bench. Under these circumstances, we are of the considered opinion that ex-parte order passed by Ld. CIT(A)/NFAC without considering the online written submission furnished by the appellant-assessee is not justified. We, therefore, deem it appropriate to set-aside the order passed by Ld. CIT(A)/NFAC with a direction to decide the appeal afresh as per fact and law and considering the reply already furnished by the assessee after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by Ld. CIT(A)/NFAC in this regard without taking any adjournment under any pretext, otherwise Ld. CIT(A)/NFAC shall be at liberty to pass appropriate order as per law. Accordingly, the grounds raised by the assessee in this appeal are allowed for statistical purposes.” 4. Since the quantum addition on which the impugned penalty has been levied already stands restored to the file of Ld. CIT(A)/NFAC, we deem it appropriate to set-aside the impugned order of Ld. CIT(A)/NFAC and restore the issue challenging the ITA No.2169/PUN/2024 4 penalty levied u/s 271AAC(1) also to file of the Ld. CIT(A)/NFAC for fresh adjudication after providing necessary opportunity of hearing to the assessee and decide in accordance with law. Thus, grounds of appeal filed by the assessee are allowed for statistical purposes. 5. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 10th day of February, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 10th February, 2025. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “A” बᱶच, पुणे / DR, ITAT, “A” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "