KETAN PRIYAVADAN SHAH ,AHMEDABAD V. ITO WARD-1(2)(3) , AHMEDABAD

ITA 1598/AHD/2025

AI Insights

This case involves an appeal by Ketan Priyavadan Shah against the penalty imposed by the National Faceless Appeal Centre (NFAC) under section 270A of the Income Tax Act, 1961, for the Assessment Year 2020-21. The penalty amounting to Rs.13,86,849 was contested on grounds that the assessing officer (AO) failed to record satisfaction and that the issues were debatable, thus not warranting a penalty. The Tribunal noted that the related quantum appeal had been restored to the CIT(A) for de novo adjudication, and consequently, the penalty appeal was also set aside and remanded to the CIT(A).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 780150 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2020-2021
• Appeal Filed On: 20-08-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: UDAY KISHANRAO KAKNE
• Assessee Lawyers: PARIN SHAH
• Keywords: Set aside

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.1598/Ahd/2025 (Assessment Year: 2020-21 Ketan Priyavadan Shah, 6, Vidyanagar Co-op. Hsg.Society, Ashram Road, Usmanpura, Ahmedabd-380013. [PAN :AFGPS3703 K] Vs. The Income Tax Officer, Ward-1(2)(3), Ahmedabad. (Appellant) .. (Respondent) Appellant by : Shri Parin Shah, AR Respondent by: Shri Uday Kishanrao Kakne, Sr. DR Date of Hearing 06.10.2025 Date of Pronouncement 07.10.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal is filed by the Assessee against the appellate order dated 30.06.2025 passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre(NFAC) relevant to the Assessment Year 2020-21. 2. The assessee has raised the following grounds of appeal: 1. The order passed by lower authorities is bad in law and required to be quashed. Printed from counselvise.com ITA No. 1598/Ahd/2025 Ketan P Shah Vs. ITO Asst. Year : 2020-21 - 2– 2. Ld. NFAC erred in law and on facts in imposing penalty of Rs.13,86,849/- u/s.270A of the Act. 3. Ld. NFAC ought to have consider fact that AO failed to record satisfaction and accordingly penalty order is required to be quashed. 4. Ld. NFAC ought to have consider fact that issue on which penalty has been imposed are debatable issued and accordingly, no penalty is leviable. 3. At the outset, we noticed that quantum appeal bearing ITA No.734/Ahd/2025 for A.Y 2020-21 dated 14.08.2025 has been restored to file of Ld. CIT(A) for adjudication denovo. The relevant extract of the order is reproduced as below: “…6.5 Considering the principles laid down by the Hon'ble Supreme Court and the interest of justice, we are of the considered view that the delay deserves to be condoned, and the matter restored to the Ld. CIT(A) for decision on merits. Accordingly, we condone the delay of 114 days in filing the appeal before the Ld. CIT(A). The impugned order of the Ld. CIT(A)is set aside, and the matter is restored to his file with a direction to decide the appeal on merits, after affording reasonable opportunity of hearing to the assessee. 7. In the result, the appeal of the assessee is allowed for statistical purposes.…” 4. Since the quantum appeal has already been set-aside to the file of Ld. CIT(A) for deciding the issue on merits, this appeal involving penalty u/s.270A of the Act, is also set aside to the file of Ld.CIT(A). Printed from counselvise.com ITA No. 1598/Ahd/2025 Ketan P Shah Vs. ITO Asst. Year : 2020-21 - 3– 5. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 07.10.2025 Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) (True Copy) Ahmedabad; Dated 07.10.2025 MV आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "