SREEMA ASSOCIATES PRIVATE LIMITED,RAJARHAT, NEW TOWN V. ITO, WARD 8(2), , KOLKATA

ITA 1061/KOL/2025

AI Insights

The case involves Sreema Associates Pvt. Ltd., which appealed against a penalty imposed by a faceless Assessing Officer under section 272A(1)(d) of the Income Tax Act, 1961. The penalty was initially dropped by the Jurisdictional Assessing Officer (JAO) but was later reinstated by a different AO. The Income Tax Appellate Tribunal (ITAT) in Kolkata examined the duality of the proceedings and the lack of specific adjudication on this issue by the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre (NFAC), Delhi. The ITAT concluded that the imposition of the penalty by a different AO, after it had been dropped by the JAO, was not justified.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711415 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2020-2021
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH”, KOLKATA SHRI GEORGE MATHAN, JUDICIAL MEMBER SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER I.T.A. No. 1061/KOL/2025 Assessment Year: 2020-2021 Sreema Associates Private Limited, DF-94, Shop No.2, Ground Floor, Premises No. 58- 324, Street No. 324, Rajarhat New Town, S.O, North 24 Parganas, West Bengal - 700156 [PAN: AASCS1199K] ……..…...…………….... Appellant vs. ITO Ward 8(2), Kolkata, NFAC, 4th Floor, Mayur Bhawan, Connaught Circus, New Delhi - 110001 ................................. Respondent Appearances by: Assessee represented by : Girdhar Dhelia, Advocate Department represented by : Sanat Kumar Raha, CIT-DR S.B. Chakraborthy, Sr. DR Date of concluding the hearing : 22.07.2025 Date of pronouncing the order : 24.07.2025 O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER 1. The present appeal emanates from order u/s 250 of the Income Tax Act, 1961, passed by the Ld. Commissioner of Income of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereafter “the Ld. CIT(A)], vide order dated 24.04.2025. 1.1 In this case, the Ld. AR pointed out that there was a duality of proceedings for the said penalty u/s 272A(1)(d) of the Act. The Ld. AR pointed out that the Jurisdictional Assessing Officer (JAO) had dropped the penalty proceedings vide his order dated 29.08.2022 and the same has been placed for our perusal in the paper book. The Ld. AR has placed on Printed from counselvise.com 2 ITA No. 1061/Kol/2025 Sreema Associates Pvt. Ltd. record documents pertaining to initiation of penalty and imposition of the same by the faceless AO, vide order dated 21.02.2023. The Ld. AR also pointed out that the Ground Nos. 1 and 2 of his appeal before the ITAT are on this very same issue. It has been further pointed out that even before the Ld. CIT(A), the assessee had raised the issue that the penalty proceedings were already dropped by JAO and hence there could have been no parallel action by a different AO. However, the Ld. CIT(A) did not specifically adjudicate on this issue and proceeded ahead to confirm the impugned penalty. 1.2 The Ld. DR, on the other hand, relied on the orders of Ld. CIT(A). 2. We have carefully considered the submissions of Ld. AR/DR and have also gone through the records. It is obvious that the penalty u/s 272A(1)(d) of the Act had been dropped by ITO Ward 8(2), Kolkata vide his order dated 29.08.2022. Once a conscious decision was taken by one AO to drop the proceedings then there was no reason why another AO, working with the same set of facts, proceeded ahead to levy the impugned penalty. In light of these facts the assessee deserves the benefit of doubt in terms of applicability of provisions of section 272A(1)(d) of the Act and the impugned penalty deserves to be quashed. 3. In the result, appeal filed by the assessee is allowed. Order pronounced on 24.07.2025 Sd/- Sd/- (George Mathan) (Sanjay Awasthi) Judicial Member Accountant Member Dated: 24.07.2025 AK, Sr. P.S. Printed from counselvise.com 3 ITA No. 1061/Kol/2025 Sreema Associates Pvt. Ltd. Copy of the order forwarded to: 1. Sreema Associates Pvt. Ltd. 2. ITO Ward 8(2), Kolkata 3. CIT(A) 4. CIT 5. CIT(DR) //True copy// By order Assistant Registrar, Kolkata Benches Printed from counselvise.com "