TULIPSTAR TOWELS PRIVATE LIMITED,AHMEDABAD V. ITO, WARD 3(1)(1), AHMEDABAD, AHMEDABAD

ITA 2336/AHD/2025

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Tulipstar Towels Pvt. Ltd. appealed against the penalty imposed by the Income Tax Officer for non-compliance with notices due to an address change that was not updated in the department's records. The company had legally changed its address and informed the Income Tax Department, but the department continued to use the old address, leading to the penalty. The tribunal concluded that the penalty was unjustified as the assessee had taken appropriate steps to update their address.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 837982 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 29-11-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMESHWAR P MEENA
• Assessee Lawyers: P D SHAH
• Section: 142(1)

Judgement Text

"THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH, AHMEDABAD Before Ms. Suchitra Kamble, Judicial Member Tulipstar Towels Pvt. Ltd. 3, Sukant Flat B/h HCG Hospital, Mithakali Six Road, Ellisbridge, Ahmedabad-380006 PAN: AAECR3292G (Appellant) Vs The Income Tax Officer, Ward-3(1)(1), Ahmedabad (Respondent) Assessee by: Shri P D Shah, A.R. Revenue by: Shri Rameshwar P Meena, Sr. D.R. Date of hearing : 05-02-2026 Date of pronouncement : 20-02-2026 आदेश/ORDER This is an appeal filed against the order dated 27-10- 2025 passed by National Faceless Appeal Centre (NFAC), for assessment year 2017-18. 2. The grounds of appeal are as under:- “1. That the learned CIT(Appeal)/ National Faceless Appeal Centre, Delhi has erred in law and facts by confirming the penalty imposed of Rs.30,000/- u/s 272A(1)(d) of the Act, and therefore, the learned AO should be directed to delete the penalty of Rs.30,000/- levied under section 272A(1)(d) of the Act. 2. That your appellant craves a leave to add, alter or amend any grounds on or before the time of hearing.” ITA No. 2336/Ahd/2025 Assessment Year 2017-18 Printed from counselvise.com I.T.A No. 2336/Ahd/2025 Tulipstar Towels Pvt. Ltd., A.Y. 2017-18 2 3. The assessee is a private limited company and has shifted its address w.e.f. 18-11-2016. The assessee has furnished the evidences related to change of address which are as follows:- “a) Receipt in G.A.R.7 dated 18/11/2016 of ministry and corporate affairs of Rs 500 In regard to fee for form No INC-22 for change in Address. b) Form no INC-24 Under section 13(2) of Companies act 2013 and Rule 29(2) of the companies Rules 2014 in regard to the application for approval of central government for change of name and Address both.” Since none of the communication could reach to the address prior to 15-12-2021, the assessee was not aware about the assessment proceedings as well as the penalty proceedings u/s. 272(A)(1)(d) of the Act. 4. The penalty order dated 29-11-2021 was passed for non- compliance of notices issued u/s. 142(1) or sub-section (2) of section 143 of the Act and thus imposed penalty of Rs. 30,000/-. The CIT(A) dismissed the appeal of the assessee. 5. The ld. A.R. submitted that the assessee has duly changed his address in PAN data base as well as has e-filed profile and written intimation. Thus, the Income Tax Department was very well aware about the address. Thus, the ld. A.R. submitted that the penalty should have not been imposed on the assessee. 6. The ld. D.R. relied upon the assessment order, penalty order and the order of the CIT(A). 7. Heard both the parties and perused all the relevant materials on record. It is pertinent to note that in this case, Printed from counselvise.com I.T.A No. 2336/Ahd/2025 Tulipstar Towels Pvt. Ltd., A.Y. 2017-18 3 the assessee has updated the address with the Department through its PAN data base and intimation with the Income Tax Department. The notices are issued including the PAN data base and its details. The Department has not taken into account the new address and therefore the assessee cannot be stated to be negligent of not informing the Assessing Officer about the change of address. Thus, imposition of penalty in the present assessee’s case u/s. 272(A)(1)(d) is not justifiable. 8. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 20-02-2026 Sd/- (Suchitra Kamble) Judicial Member a.k. Ahmedabad : Dated 20/02/2026 आदेश क\u0006 \u0007\bत ल प अ\u000fे षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील\u0012य अ\u0013धकरण, अहमदाबाद Printed from counselvise.com "