SHIVAM NIRANJANLAL PODDAR,GANDHIDHAM V. INCOME TAX WARD ,2, GANDHIDHAM

ITA 310/RJT/2024

AI Insights

The case involves an appeal by Shivan N. Poddar against a penalty imposed by the Income Tax Officer, Ward-2, Gandhidham, under section 270A of the Income Tax Act, 1961, which was upheld by the Commissioner of Income-tax (Appeals). The penalty was linked to additions made during the quantum assessment for the Assessment Year 2020-21. The tribunal's decision to allow the appeal was based on the fact that the quantum assessment had been restored to the Assessing Officer's file in a related case, thereby affecting the validity of the penalty.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 315925 (ITAT-RAJKOT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2020-2021
• Other Referred Cases: ITA No.294/RJT/2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHEERAJ KUMAR GUPTA
• Assessee Lawyers: CHETAN AGARWAL
• Section: 143(3)

Judgement Text

"ITA No. 310/Rjt/2024 A.Y 20-21 Shivan N. Poddar Page | 1 आयकर अपीलीय अिधकरण, राजकोट Ɋायपीठ, राजकोट। IN THE INCOME TAX APPELLATE TRIBUNAL, “SMC” RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.310/RJT/2024 Ǔनधा[रण वष[/Assessment Year : 2020-21 Shivam Niranjanlal Poddar, Plot No.62, Sector-1, Gandhidham-370 201 बनाम/ Vs Income Tax Officer, Ward-2, Gandhidham-370 201 èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AIYPP 2374 E (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Ǔनधा[ǐरती कȧ ओर से/Assessee by : Shri Chetan Agarwal, AR राजèव कȧ ओर से/Revenue by : Shri Dheeraj Kumar Gupta, Sr-DR सुनवाई कȧ तारȣख /Date of Hearing : 15/05/2025 घोषणा कȧ तारȣख /Date of Pronouncement : 16/05/2025 आदेश/Order Per Dr. Arjun Lal Saini, A.M Captioned appeal filed by the assessee, pertaining to Assessment Year 2020-21 is directed against the order passed under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by National Faceless Appeal Centre (NFAC), Delhi/Commissioner of Income-tax (Appeals), dated 27.01.2024, which in turn arises out of a penalty order passed by the Assessing Officer, u/s 270A of the Act, on 23.01.2023. 2. At the outset itself, the Ld. Counsel of the assessee has filed short synopsis narrating the fact that addition in the quantum assessment has already ITA No. 310/Rjt/2024 A.Y 20-21 Shivan N. Poddar Page | 2 been restored back to the file of Assessing Officer, in ITA No.294/RJT/2024 dated 29.11.2024 in assessee`s own case. Therefore, this matter may be also restored back to the file of Assessing Officer also, as the penalty imposed by the assessing officer is linked with the quantum proceedings. This fact was confronted to learned Senior Departmental Representative (ld. Sr-DR) for the Revenue, and after going through the above referred decision of the Tribunal, and ld DR confirmed the aforesaid facts. 3. I have heard both the parties and perused the materials available on record. On perusal of record, I find that Assessing Officer completed assessment u/s 143(3) r.w.s. 144B of the Act on 24.08.2022. The Assessing Officer while passing the assessment order made addition u/s 57 of the Act amounting to Rs.62,58,034/-. The Assessing officer while passing assessment order initiated penalty u/s 270A of the Act. The Assessing Officer levied penalty vide order dated 23.01.2023 @ 50% of tax sought to be evaded and worked out the penalty tax of Rs.36,30,564/-. 4. Aggrieved by the penalty imposed by Assessing Officer, the assessee preferred an appeal before Ld.CIT(A). The Ld.CIT(A) upheld the penalty imposed by Assessing Officer, hence, this appeal filed by the assessee, before the Tribunal. 5. Considering the fact that addition made in the quantum assessment has already been restored back to the file of Assessing Officer in ITA No.294/RJT/2024, dated 29.11.2024, therefore, the penalty levied u/s 270A of the Act, would not survive. Thus, this appeal is allowed without going in any other issue. However, the Assessing Officer would be at liberty to initiate fresh ITA No. 310/Rjt/2024 A.Y 20-21 Shivan N. Poddar Page | 3 penalty proceedings in accordance with law at the time of passing assessment order in restoration proceedings. 6. In the result, appeal of the assessee is allowed. Order pronounced in the open court on 16/05/2025. Sd/- (Dr. A.L. SAINI) लेखा सदÖय/ACCOUNTANT MEMBER राजकोट /Rajkot Ǒदनांक/ Date: 16 /05/2025 DKP Outsourcing Sr.P.S आदेश कì ÿितिलिप अúेिषत/ Copy of the order forwarded to :  अपीलाथê/ The Appellant  ÿÂयथê/ The Respondent  आयकर आयुĉ/ CIT  आयकर आयुĉ(अपील)/ The CIT(A)  िवभागीय ÿितिनिध, आयकर अपीलीय आिधकरण, राजकोट/ DR, ITAT, RAJKOT  गाडªफाईल/ Guard File By order/आदेश से, // True Copy // सहायक पंजीकार आयकर अपीलȣय अͬधकरण, राजकोट "