SARIKA ZENDE,PUNE V. INCOME TAX OFFICER, WARD-14(5), PUNE, PUNE

ITA 1775/PUN/2024

AI Insights

The case involves Sarika Dadaso Zende, the appellant, who appealed against the order of the CIT(A)-National Faceless Appeal Centre, which confirmed a penalty of Rs.15,48,108 levied by the Assessing Officer under section 270A of the Income Tax Act, 1961. The penalty was related to under-reporting of income due to mis-reporting. The appellant had initially filed a return of income for the assessment year 2020-2021, which was later revised. The revisions included claims for deductions on statutory dues which were disallowed in earlier years due to delays in payment. The Assessing Officer disallowed these deductions and initiated penalty proceedings. Both the Assessing Officer and the CIT(A) upheld the penalties, leading to this appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32625 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND DESAI
• Assessee Lawyers: MIHIR JAGTAP VIRTUAL
• Keywords: Revised return

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE “B” BENCH : PUNE BEFORE SHRI RAMA KANTA PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER I.T.A.No.1775/PUN./2024 Assessment Year 2020-2021 Sarika Dadaso Zende, Flat No.4, Baba Apartment, Sinhagad Road, Sitabag Colony, PUNE - 411 030. Maharashtra. PAN AANPZ4232A vs. The Income Tax Officer, Ward-14(5), Pune Range, C/o. DGIT (Investigation), 12, Aaykar Bhavan, Sadhu Vaswani Road, Agarkar Nagar, PUNE – 411 001. Maharashtra. (Appellant) (Respondent) For Assessee : Shri Mihir Jagtap (Virtual) For Revenue : Shri Arvind Desai, Addl. CIT-DR Date of Hearing : 15.01.2025 Date of Pronouncement : 21.01.2025 ORDER PER RAMA KANTA PANDA, V.P. : This appeal filed by the Assessee is directed against the order dated 26.06.2024 of the learned CIT(A)-National Faceless Appeal Centre [in short the “NFAC”] Delhi, for assessment year 2020-2021. 2. There is a delay of 05 days in filing the appeal, for which, the assessee has filed a condonation application explaining the reasons for such delay. After considering the contents of the condonation application and after hearing the Learned DR, the delay in filing of the appeal of 05 days is condoned and appeal is admitted for adjudication. 2 ITA.No.1775/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) in confirming the penalty of Rs.15,48,108/- levied by the Assessing Officer u/sec.270A of the Income Tax Act, 1961 (in short \"the Act\"). 4. Facts of the case, in brief, are that the assessee is an individual and engaged in the business of sale and purchase of housekeeping materials and provision of manpower services to private and non-government entities. She filed her return of income on 11.11.2020 admitting total income of Rs.30,06,080/- and claiming refund of Rs.3,29,430/-. Subsequently, the assessee filed a revised return on 29.03.2021 admitting income of Rs.15,70,920/- and claiming refund of Rs.10,86,080/-. In the revised return, the assessee claimed deduction of statutory dues paid in F.Y. 2019-2020 amounting to Rs.24,25,158/- on payment basis which were disallowed in the earlier years on account of delay in payment as per the provisions of sec.43B of the Act, the details of which are as under : F.Y. Amount of Expenditure Disallowed Under Section 43B (Rs.) Nature of Expenditure Amount Claimed on Payment Basis in F.Y. 19-20(Rs.) Date of Payment 2015-16 18,71,199 Seervice Tax dues 18,71,199 22-Jan-2020 2015-16 3,21,180 Contribution towards employee PF 3,21,180 22-Jan-2020 2016-17 2,41,779 Service Tax dues 2,41,779 22-Jan-2020 TOTAL 24,25,158 24,25,158 3 ITA.No.1775/PUN./2024 5. In the assessment order, the Assessing Officer found that such claim of assessee is incorrect and, therefore, he disallowed the deduction of Rs.24,25,158/- u/sec.43B of the Act. 6. The assessee filed an appeal before the Ld. CIT(A). In the meantime, the Assessing Officer initiated penalty proceedings u/sec.270A of the Act for under-reporting of income in consequence of mis-reporting thereof and issued show cause notice u/sec.274 r.w.s.270A of the Act. Rejecting the various explanations given by the assessee, the Assessing Officer levied penalty of Rs.15,15,794/-. The Assessing Officer, similarly noted that interest payment of Rs.2,07,144/- has been debited to P & L A/c and such interest was on account of late payment of service tax liability of earlier years. Rejecting the various explanation given by the assessee, the Assessing Officer disallowed the amount of Rs.2,07,144/- to the total income of the assessee and initiated penalty proceedings u/sec.270A of the Act and levied penalty of Rs.32,314/-. The penalty levied by the Assessing Officer u/sec.270A of the Act totaling to Rs.15,48,108/- was confirmed by the Ld. CIT(A). 7. Aggrieved with such order of the Ld. CIT(A), the assessee is in appeal before the Tribunal. 4 ITA.No.1775/PUN./2024 8. Learned Counsel for the Assessee, at the outset, submitted that the quantum appeal has been restored to the file of Ld. CIT(A) with certain directions. Therefore, he has no objection if the matter is restored to the file of Ld. CIT(A) for fresh adjudication of the issue. 9. The Learned DR has no objection to the above proposition. 10. After hearing both the sides, we find the quantum proceedings have been restored to the file of Ld. CIT(A) for adjudication of the issue afresh. We, therefore, restore the issue of penalty confirmed by the Ld. CIT(A) to his file for fresh adjudication. The grounds raised by the assessee are accordingly allowed for statistical purposes. 11. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 21.01.2025. Sd/- Sd/- [VINAY BHAMORE] [RAMA KANTA PANDA] JUDICIAL MEMBER VICE PRESIDENT Pune, Dated 21st January, 2025 VBP/- Copy to 1. The appellant 2. The respondent 3. The CIT(A), Pune concerned. 4. D.R. ITAT, “B” Bench, Pune. 5. Guard File. //By Order// //True Copy // Sr. Private Secretary, ITAT, Pune Benches, Pune. "