SHRINIVAS,RAICHUR V. INCOME TAX OFFICER, WARD-1, RAICHUR

ITA 1195/BANG/2025

AI Insights

The case involves an appeal by Shri. Shrinivas against the penalty levied under section 271AAC(1) of the Income Tax Act, as confirmed by the CIT(A). The primary contention was that the CIT(A) did not adhere to the directions given by the ITAT in the quantum proceedings, which were to remit the issue back to the AO for fresh consideration. The Tribunal noted that since the quantum proceedings were remitted back to the AO, the penalty proceedings, which were based on the outcomes of the quantum proceedings, should also be reconsidered by the AO.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772126 (ITAT-BANGALORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Other Referred Cases: ITA No.993/Bang/2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: V. SRINIVASAN
• Keywords: Opportunity of being heard

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH : BANGALORE BEFORE SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER AND SHRI SOUNDARARAJAN K, JUDICIAL MEMBER ITA No.1195/Bang/2025 Assessment Year : 2017-18 Shri. Shrinivas, S/o Yanikappa Parvathi Nagar Near Channabasaveshwara Oil Traders Maski, Raichur– 584 124, Karnataka. PAN : DRWPS 0518 F Vs. ITO, Ward – 1, Raichur. APPELLANT RESPONDENT Assessee by : Shri. V. Srinivasan, Advocate Revenue by : Shri. Sankar Ganesh D, Addl. CIT(DR)(ITAT), Bangalore. Date of hearing : 11.08.2025 Date of Pronouncement : 28.08.2025 O R D E R Per Laxmi Prasad Sahu, Accountant Member : This is an appeal filed by the assessee against CIT(A)’s order vide DIN & Order No: ITBA/NFAC/S/250/2024-25/1075226330(1) dated 29.03.2025. 2. The sole and substantive issue raised by the assessee in this appeal is regarding penalty levied under section 271AAC(1) of the Act. The learned Counsel submitted that the learned CIT(A) issued notices under section 250 of the Act on 23.03.2024, 07.06.2024, 17.01.2025 and 27.03.2024 for furnishing information on or before 27.03.2024, 14.06.2024, 24.01.2025, 28.03.2025 on ITBA portal. The learned Counsel submitted that the Hon’ble Printed from counselvise.com ITA No.1195/Bang/2025 Page 2 of 3 ITAT in quantum proceedings has been remitted to the AO observing as under: “6. Considering the rival submissions as well as prayer of the assessee and in the interest of justice, we remit the issue to the AO for fresh consideration and decision as per law. The assessee is directed to update its email id, communication address and other details and file necessary documents that would be essential and required for substantiating his case and for proper adjudication by the revenue authorities. Needless to say that reasonable opportunity of being heard be given to the assessee. The assessee is directed to cooperate with the proceedings and in case of further default, the assessee shall not be entitled to any leniency.” 3. He filed Paper Book containing page Nos.1 to 14 and in page Nos.13 and 14 of his Order of the quantum proceedings of the Co-ordinate Bench in ITA No.993/Bang/2024 which is available before the learned CIT(A). However, he has passed the Order without going by the direction issued by the Hon’ble Tribunal since the Tribunal has given direction to the AO for a fresh consideration, therefore the penalty will not survive. On the other hand, the learned DR relied onthe Order of the lower authorities and submitted that the penalty Order passed by the Ao and confirmed by the CIT(A) will not be initiated only because of the quantum proceedings has been remitted back to the AO. 4. Considering the rival submissions, the learned CIT(A) has confirmed the penalty Order under section 271AAC(1) of the Act and passed Order on 29.03.2025. The Co-ordinate Bench in ITA No.993/Bang/2024 passed the Order on 12.07.2024 and has remitted to the AO for fresh consideration. The quantum proceeding has been remitted to the AO by the co-ordinate bench as per the above observations. Therefore, the penalty proceedings will also go Printed from counselvise.com ITA No.1195/Bang/2025 Page 3 of 3 back to the AO since the penalty is based on the quantum proceedings. Therefore, this issue is remitted back to the AO for a fresh consideration. 5. 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/- Sd/- (SOUNDARARAJAN K) (LAXMI PRASAD SAHU) Judicial Member Accountant Member- Bangalore. Dated: 28.08.2025. /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 "