SANJAY MOHANLAL BAFNA,PUNE V. ASST. COMMISSIONER OF INCOME TAX CIRCLE 5, PUNE

ITA 2868/PUN/2024

AI Insights

The case involves an appeal by Sanjay Mohanlal Bafna against the order of the Ld. CIT(A) / NFAC, which confirmed a substantial penalty levied by the Assessing Officer under section 270A of the Income Tax Act, 1961, for the assessment year 2018-19. The penalty was based on additions related to discrepancies in the capital account and sundry creditors. However, in a related earlier case (ITA No.2047/PUN/2024), the Tribunal had deleted these quantum additions, leading to the current appeal for the cancellation of the penalty. Both parties acknowledged the Tribunal's previous decision, leading to the allowance of the appeal and cancellation of the penalty.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471171 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2018-2019
• Other Referred Cases: ITA No.2047/PUN/2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR KESHARI
• Assessee Lawyers: NIKHIL S PATHAK
• Keywords: Set aside

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER ITA No.2868/PUN/2024 Assessment year : 2018-19 Sanjay Mohanlal Bafna A 33, Sagar Bunglow, Vidyasagar Colony, Market Yard, Pune – 411037 V s. ACIT, Circle-5, Pune PAN: ABTPB8135H (Appellant) (Respondent) Assessee by : Shri Nikhil S Pathak Department by : Shri Ajay Kumar Keshari, CIT Date of hearing : 25-03-2025 Date of pronouncement : 27-03-2025 O R D E R PER R. K. PANDA, VP : This appeal filed by the assessee is directed against the order dated 09.09.2024 of the Ld. CIT(A) / NFAC, Delhi relating to assessment year 2018-19. 2. There is a delay of 49 days in filing of this appeal before the Tribunal for which the assessee has filed a condonation application along with an affidavit explaining the reasons for such delay. After considering the contents of the condonation application filed along with the affidavit and after hearing the Ld. DR, the delay in filing of the appeal is condoned and the appeal is admitted for adjudication. 2 ITA No.2868/PUN/2024 3. Although a number of grounds have been raised by the assessee, however, these all relate to the order of the Ld. CIT(A) / NFAC in confirming the penalty of Rs.38,24,86,228/- levied by the Assessing Officer u/s 270A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). 4. The Ld. Counsel for the assessee at the outset filed a copy of the order of the Tribunal in assessee’s own case vide ITA No.2047/PUN/2024, order dated 18.03.2025 for assessment year 2018-19 and submitted that the quantum addition has already been deleted by the Tribunal. He accordingly submitted that since the quantum addition has been deleted, therefore, the penalty does not survive. 5. The Ld. DR fairly conceded that the Tribunal has deleted the addition made by the Assessing Officer and sustained by the Ld. CIT(A) / NFAC. 6. We have heard the rival arguments made by both the sides, perused the orders of the Assessing Officer and Ld. CIT(A) / NFAC and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find the Assessing Officer in the instant case levied penalty of Rs.38,24,86,228/- u/s 270A on account of addition of Rs.40,21,54,775/- being difference in the capital account and addition of Rs.13,60,27,619/- being difference in the sundry creditors which has been confirmed by the Ld. CIT(A) / NFAC. We find in the quantum proceedings, the Tribunal vide ITA No.2047/PUN/2024 order dated 18.03.2025 has already deleted both the additions, therefore, the penalty does not survive. We, therefore, set aside the order of the Ld. CIT(A) / NFAC and 3 ITA No.2868/PUN/2024 direct the Assessing Officer to cancel the penalty. The grounds raised by the assessee are accordingly allowed. 7. In the result, the appeal filed by the assessee is allowed. Order pronounced in the open Court on 27th March, 2025. Sd/- Sd/- (VINAY BHAMORE) (R. K. PANDA) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; दिन ांक Dated : 27th March, 2025 GCVSR आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपीलार्थी / The Appellant; 2. प्रत्यर्थी / The Respondent 3. 4. The concerned Pr.CIT, Pune DR, ITAT, ‘B’ Bench, Pune 5. गार्ड फाईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अधिकरण ,पुणे / ITAT, Pune S.No. Details Date Initials Designation 1 Draft dictated on 25.03.2025 Sr. PS/PS 2 Draft placed before author 26.03.2025 Sr. PS/PS 3 Draft proposed & placed before the Second Member JM/AM 4 Draft discussed/approved by Second Member AM/AM 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order "