SAPNA SANDEEP MEHTA,MUMBAI V. ITO WARD 42(1)(5), KAUTILYA BHAWAN

ITA 6836/MUM/2025

AI Insights

The case involves an appeal by Sapna Sandeep Mehta against the penalty order passed under Section 271(1)(c) of the Income Tax Act, 1961 for the Assessment Year 2009-2010. The penalty of Rs.3,56,939 was sustained by the CIT(A) despite the appellant's request to await the decision on the quantum appeal before adjudicating the penalty. The Tribunal found that the CIT(A) should have awaited the outcome of the quantum appeal before deciding on the penalty, leading to the setting aside of the CIT(A)'s order and a directive for a fresh adjudication.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 822727 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2009-2010
• Appeal Filed On: 28-10-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ASSESSEE
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER ITA No.6836/MUM/2025 (Assessment Year:2009-2010) Sapna Sandeep Mehta 701, Zee Square Opp. Bank of Baroda, M. G. Road, Vile Parle East, Mumbai – 400057. Maharashtra. [PAN: AABPS9114L] …………. Appellant Income Tax Officer 42(1)(5), Mumbai Bandra Kurla Complex, Bandra East Mumbai - 400051. Maharashtra. Vs …………. Respondent Appearance For the Appellant/Assessee For the Respondent/Department : : None Shri Swapnil Choudhary Date Conclusion of hearing Pronouncement of order : : 22.12.2025 23.12.2025 O R D E R [ Per Rahul Chaudhary, Judicial Member: 1. The present appeal preferred by the Assessee is directed against the order, dated 17/10/2025, passed by the National Faceless Appeal Centre (NFAC), [hereinafter referred to as ‘the CIT(A)’] whereby the Ld. CIT(A) had Partly Allowed the appeal against the Penalty Order, dated 25/08/2015, passed under Section 271(1)(c) of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’] for the Assessment Year 2009-2010. 2. The Assessee has raised following grounds of appeal : “1. On the facts and circumstances of the case and in law, the authorities below had erred in sustaining a penalty of Printed from counselvise.com ITA No.6836/Mum/2025 Assessment Year 2009-2010 2 Rs.3,56,939/- without adjudicating the issue on merits and ahead of decision of quantum appeal in the matter, and the reason assigned for levying of such penalty were wholly wrong inconsistent with the facts of the case and against the principles of the I.T.Act, 1961 and rules made thereunder.” 3. We have perused the material on record and have taken into consideration the submission advanced by the Learned Departmental Representative. 4. The Assessee is aggrieved by the fact that the Learned CIT(A) has adjudicated the appeal preferred by the Assessee against the Penalty Order, dated 25/08/2025, passed under Section 271(1)(c) of the Act without awaiting the decision of the Commissioner of Income Tax (Appeals) on the appeal preferred by the Assessee against the Assessment Order challenging the additions which formed the basis of levy of penalty. On perusal of the order impugned by way of present appeal passed by the Learned CIT(A), we find that the Assessee had requested the Learned CIT(A) to await the decision of the quantum appeal preferred by the Assessee. However, rejecting the aforesaid submissions the Learned CIT(A) passed the impugned order. Therefore the factual averment made in the grounds of appeal and statement of facts is consistent to the material on record. Finding merit in the ground raised by the Assessee, we set aside the impugned order, dated 17/10/2025, passed by Learned CIT(A) with the directions to adjudicate the appeal afresh after taking into consideration the decision of Learned Commissioner of Income Tax (Appeals) in the quantum appeal preferred by the Assessee. The Assessee is directed to take necessary steps expedite adjudication of the quantum appeal and place a copy of this order before the Learned Commissioner of Income Tax (Appeals). In terms of aforesaid Ground No. 1 raised by the Assessee is allowed for statistical purposes. 5. In the said appeal preferred by the Assessee is treated is allowed for Printed from counselvise.com ITA No.6836/Mum/2025 Assessment Year 2009-2010 3 statistical purposes Order pronounced on 23.12.2025. Sd/- Sd/- (Prabhash Shankar) Accountant Member (Rahul Chaudhary) Judicial Member म ुंबई Mumbai; दिन ुंक Dated : 23.12.2025 Milan, LDC Printed from counselvise.com ITA No.6836/Mum/2025 Assessment Year 2009-2010 4 आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : 1. अपील र्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आय क्त/ The CIT 4. प्रध न आयकर आय क्त / Pr.CIT 5. दिभ गीय प्रदिदनदध ,आयकर अपीलीय अदधकरण ,म ुंबई / DR, ITAT, Mumbai 6. ग र्ड फ ईल / Guard file. आिेश न स र/ BY ORDER, सत्य दपि प्रदि //True Copy// उप/सह यक पुंजीक र /(Dy./Asstt. Registrar) आयकर अपीलीय अदधकरण, म ुंबई / ITAT, Mumbai Printed from counselvise.com "