NAAYIDOLLE SHIVALINGAIAH PRADEEPA,BANGALORE V. INCOME TAX OFFICER, WARD-5(2)(4), BANGALORE

ITA 1597/BANG/2025

AI Insights

This case involves an appeal by Ms. Naayidolle Shivalingaiah Pradeepa against the penalty imposed following an ex-parte assessment under section 144 of the Income Tax Act. The assessee had declared an income of Rs.3,29,860 in her return filed on 02.08.2017, which was scrutinized leading to the addition of Rs.44,08,927 as income under section 69A and section 115BBE. The penalty under sections 271AAC(1) and 272A(1)(d) was also initiated. The CIT(A) upheld the penalty, which led to the current appeal. The Tribunal noted that since the quantum of income addition was set aside for a fresh assessment, the basis for the penalty also required re-evaluation by the AO.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785163 (ITAT-BANGALORE)
• Duration Of Justice: 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Appeal Filed On: 17-07-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R. CHANDRASHEKAR
• Keywords: Set aside
• Section: 144

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI.LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND SHRI.KESHAV DUBEY, JUDICIAL MEMBER ITA No.1597/Bang/2025 Assessment Year : 2017-18 Ms. Naayidolle Shivalingaiah Pradeepa, 35376 376, 1st Cross, 17th Main Road, Muneshwara Block, Srinagar, Bangalore – 560 026. PAN : CHXPP 3704 J Vs. ITO, Ward – 5(2)(4), Bangalore. APPELLANT RESPONDENT Assessee by : Shri. R. Chandrashekar, Advocate Revenue by : Shri. Subramanian S,JCIT(DR)(ITAT), Bangalore. Date of hearing : 09.10.2025 Date of Pronouncement : 29.10.2025 O R D E R Per Laxmi Prasad Sahu, Accountant Member : This appeal is filed by the assessee against the Order passed by the NFAC, CIT(A) vide DIN and Order No.ITBA/NFAC/S/250/2025- 26/1078231080(1) dated 07.07.2025. 2. Briefly stated the facts of the case are that assessee filed return of income on 02.08.2017 declaring income of Rs.3,29,860/-. Case was selected for scrutiny and notice under section 143(2) of the Act was issued to the assessee and other statutory notices were issued for completing assessment under section 144 of the Act. From the information available with the Department, assessee had maintained 2 bank accounts (i) savings bank account No.593101203023 in Canara Bank, Vishweshwarapuram Branch and (ii) Account Nos.47746 and 18293 in Sir M Visvesvaraya Co-operative Bank Printed from counselvise.com ITA No.1597/Bang/2025 Page 2 of 4 Ltd. The total cash deposited ofRs.44,08,927/- was added as income under section 69A of the Act and section 115BBE of the Act was also applied and assessment was completed ex-parte. Penalty proceedings were also initiated under sections 271AAC(1) and 272A(1)(d) of the Act. 3. Aggrieved from the above Order, assessee filed appeal before the learned CIT(A) against penalty Order on 26.11.2021. The learned CIT(A) dismissed appeal of the assessee. 4. Aggrieved from the above Order, assessee is in appeal before the Tribunal. The learned Counsel submitted that assessee filed appeal against 144 Order before learned CIT(A) on 19.02.2020 and the learned CIT(A) set aside the matter to the AO for a fresh consideration observing as under: Printed from counselvise.com ITA No.1597/Bang/2025 Page 3 of 4 5. Aggrieved he submitted that once quantum proceedings have been set aside to the AO the penalty Order should also go back to AO for fresh consideration. 6. Learned DR relied on the Order of AO and lower authorities. 7. Considering the submissions of the assessee, we noted that assessment was completed under section 144 of the Act and penalty proceedings was also initiated under section 272A(1)(d) of the Act on 17.11.2021 of Rs.10,000/- and the penalty Order has been confirmed by CIT(A). Assessee had also filed appeal against 144 Assessment Order before learned CIT(A) and the learned CIT(A) had dismissed penalty appeal as noted supra and directed the AO to Printed from counselvise.com ITA No.1597/Bang/2025 Page 4 of 4 pass fresh Order on merits of addition. Therefore the very basis for initiation of penalty under section 272A(1)(d) of the Act is remitted to AO, then the penalty appeal should also go to AO for a fresh consideration. 8. In the result, appeal filed by the assessee is allowed for statistical purposes. Pronounced in the open court on the date mentioned on the caption page. Sd/- Sd/- (KESHAV DUBEY) (LAXMI PRASAD SAHU) Judicial Member Accountant Member Bangalore. Dated: 29.10.2025. /NS/* Copy to: 1. Appellants 2. Respondent 3. DRP 4. CIT 5. CIT(A) 6. DR,ITAT, Bangalore. 7. Guard file By order Assistant Registrar, ITAT, Bangalore. Printed from counselvise.com "