KRISHNA CONSTRUCTION,RANCHI V. DCIT CIRCLE-1 RANCHI, RANCHI

ITA 21/RAN/2025

AI Insights

Krishna Construction appealed against the penalty confirmed by the CIT(A), which was levied for non-compliance with certain notices during the assessment for the A.Y. 2015-16. The penalty was initially imposed by the Assessing Officer and upheld by the CIT(A). The main contention was that the CIT(A) passed the order without waiting for the assessee's compliance to a notice, which was issued shortly before the order was passed. The tribunal noted that the subsequent assessment order under Section 143(3) indicated the assessee's cooperation, leading to the deletion of the penalty.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 826888 (ITAT-RANCHI)
• Duration Of Justice: 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 17-01-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER ITA No. 21/Ran/2025 (Assessment Year-2015-16) Krishna Construction, Plot No. 59, New A G Cooperative Colony, Near DAV Kapildev, Ranchi-834002 (Jharkhand) PAN No. AAACB 7934 M Vs. D.C.I.T., Circle-1, Ranchi. Appellant/ Assessee Respondent/ Revenue Assessee represented by Shri Vinay Kumar Jalan, A.R. Department represented by Shri R.C. Marndi, Sr.DR Date of hearing 05/01/2026 Date of pronouncement 05/01/2026 O R D E R PER: BENCH 1. This is an appeal filed by the assessee against the order of the ld. CIT(A), NFAC, Delhi in Appeal No. NFAC/2014-15/10301346 dated 23/10/2024 for the A.Y. 2015-16 against the confirmation of penalty levied under Section 271(1)(b) of the Income Tax Act, 1961 (in short, the Act). 2. Shri Vinay Kumar Jalan, ld. A.R. is represented on behalf of the assessee and Shri R.C. Marndi, ld. Sr.DR represented on behalf of the revenue. 3. It was submitted by the ld. AR that the penalty has been levied for non- compliance to certain notices in the course of assessment. It was a submission that the ld. CIT(A) had issued notice to the assessee on 21/10/2024 asking for compliance by 25/10/2024 but the ld. CIT(A) had without waiting for the compliance by the assessee, passed the order on Printed from counselvise.com ITA No. 21/Ran/2025 Krishna Construction Vs DCIT 2 23/10/2024. It was also the submission that the assessment order itself has been passed under Section 143(3) and therefore, it should be assumed that non-compliance to earlier notices was already pardoned by the Assessing Officer. 4. In reply, the ld Sr.DR has vehemently supported the orders of the lower authorities. 5. We have considered the rival submissions. As it is noticed that the quantum assessment order has been passed under Section 143(3) after the alleged non-compliance by the assessee, it is assumed that the assessee has subsequently cooperated in the assessment proceedings and therefore, the Assessing Officer has also pardoned the non-compliance. This being so, the penalty as levied by the Assessing Officer and as confirmed by the ld. CIT(A) stands deleted. 6. In the result, this appeal of the assessee is allowed. Order announced in open court on 05/01/2026 Sd/- Sd/- (RATNESH NANDAN SAHAY) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER Ranchi, Dated: 05/01/2026 *Ranjan Copy to: 1. Assessee 2. Revenue 3. CIT 4. DR By order 5. Guard File Sr. Private Secretary, ITAT, Ranchi Printed from counselvise.com "