DATTA DIGAMBAR SAHKARI VAHATUK KAMGAR SANSTHA LIMITED,PUNE vs. ITO WD- 5(2), PUNE

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ITA 573/PUN/2026Status: DisposedITAT Pune13 August 2026AY 2018-194 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee was not provided with adequate opportunity to present its case before the CIT(A). Therefore, the matter was remanded back to the CIT(A) for a fresh adjudication on merits after allowing a reasonable opportunity of hearing.

What were the facts?

The assessee, an AOP engaged in transportation, had its income significantly increased by the AO due to unexplained contractual receipts. The AO also levied a substantial penalty under Section 270A. The assessee's appeal before the CIT(A) was dismissed ex-parte for non-compliance with hearing notices.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal ex-parte without providing adequate opportunity to the assessee. Whether the penalty under Section 270A was confirmed without proper adjudication on merits.

Which sections of the Income-tax Act were involved?

Section 270A,Section 147,Section 144B,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE

Before: SHRI RAMA KANTA PANDA & Ms. ASTHA CHANDRA

For Appellant: Smt. Deepa Khare
For Respondent: Shri Mithun Shete, CIT-DR

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI RAMA KANTA PANDA, VICE PRESIDENT AND Ms. ASTHA CHANDRA, JUDICIAL MEMBER

ITA No. 573/PUN/2026 Assessment Year : 2018-19 Datta Digambar Sahkari ITO, Ward-5(2), Vahatuk Kamgar Sanstha PMT Building, Limited, vs. Shankar Sheth Road, Datta Digambar Building Swargate, 130 to 133/2, Pune-411037. Pune Satara Road, Katraj S.O. Bhilarewadi Pune Pune-411046. PAN : AAAAD0195J (Appellant) (Respondent) Assessee by : Smt. Deepa Khare Department by : Shri Mithun Shete, CIT-DR Date of Hearing : 12-08-2026 Date of Pronouncement : 13-08-2026 O R D E R PER ASTHA CHANDRA, J.M.:

The appeal filed by the assessee is directed against the order dated 23-01-2026 of the Ld. Commissioner of Income Tax (Appeals), NFAC, Delhi [“CIT(A)/NFAC”], u/s. 250 of the Income Tax Act, 1961 (the “Act”), pertaining to Assessment Year (“AY”) 2018-19, whereby he has confirmed the penalty of Rs. 8,63,00,540/- levied by the Ld. Assessing Officer (“AO”) u/s. 270A of the Act.

2.

Briefly stated, the facts of the case are that the assessee is an Association of Persons (“AOP”) and engaged in the business of transportation activity. The assessee filed its original return of income on 04-10-2018, declaring total income of Rs. 58,97,210/-. The case of the assessee was selected for scrutiny and the assessment was completed u/s. 147 r.w.s. 144B of the Act on 28-03-2023, determining the total income at

2 ITA No. 573/PUN/2026 Rs. 12,98,67,449/-, thereby making an addition of Rs. 12,39,70,239/- on account of un-explained/un-disclosed contractual receipt income. Simultaneously, penalty proceedings were initiated u/s. 270A of the Act and the Ld.AO levied the penalty of Rs. 8,63,00,540/- [being 200% of amount of tax payable] as under reported income in consequence of mis- reporting of income u/s. 270A of the Act, vide his ex-parte order dt. 26-09- 2023.

3.

Aggrieved, the assessee filed an appeal before the Ld.CIT(A)/NFAC. During the appellate proceedings, two notices of hearing were issued by the Ld.CIT(A)/NFAC. However, due to non-compliance to the said notices, the Ld.CIT(A)/NFAC passed the ex-parte order, dismissing the appeal of the assessee.

4.

Dissatisfied, the assessee is in appeal before the Tribunal, raising the following grounds of appeal:

“1. Learned CIT(A) erred in law and on facts in dismissing appeal ex- parte without appreciating the facts and circumstances of the case. 2. The learned CIT(A) has erred in fact and in law in confirming levy of penalty under section 270A of the Income Tax Act 1961 amounting to Rs. 8,63,00,540/- without appreciating the facts of the case. 3. The appellant seeks permission to add, alter, amend modify, rectify, delete, withdraw, the grounds of appeal and / or to take additional ground during the course of appellate proceedings.” 5. We have heard the Ld. Representatives of the Parties and perused the material available on record. The Ld.AR submitted that the assessee could not respond to the notices issued by the Ld.CIT(A)/NFAC due to certain unavoidable circumstances beyond its control. The Ld.AR contended that only two notices were issued by the Ld.CIT(A)/NFAC and hence, the assessee was not provided with adequate opportunity to substantiate its case. She therefore, humbly requested that the assessee may be granted one more opportunity to substantiate its case by filing the

3 ITA No. 573/PUN/2026 requisite details/documents/evidences. The Ld.DR, on the other hand, supported the order of the Ld.CIT(A)/NFAC and the Ld.AO. We observe that the Ld.CIT(A)/NFAC is silent on merits of the case and has endorsed the findings of the Ld.AO. He has dismissed the appeal of the assessee for non-prosecution applying the decision of the Hon'ble Apex Court in the case of B.N. Bhattacharjee and Another [118 ITR 461] and dismissed the appeal of the assessee for non-prosecution.

6.

On the facts and in the circumstances of the case enumerated above, we are of the opinion that in the interest of justice, the matter deserves to be sent back to the file of the Ld.CIT(A)/NFAC) for adjudicating the assessee‟s appeal afresh, on merits and as per fact and law, after allowing reasonable opportunity of hearing to the assessee. Needless to say, the assessee shall provide the requisite support in terms of submitting the relevant details/documents/evidence as may be required/called upon on the appointed date, without seeking any adjournment, unless required for a sufficient cause, failing which the Ld.CIT(A)/NFAC shall be at liberty to pass the appropriate order in accordance with law. We hold and direct accordingly. The grounds of appeal raised by the assessee are accordingly allowed for statistical purposes.

7.

In the result, the appeal filed by the assessee is treated as allowed for statistical purposes. Order pronounced in the open Court on 13-08-2026

Sd/- Sd/- (RAMA KANTA PANDA) (ASTHA CHANDRA) VICE PRESIDENT JUDICIAL MEMBER Tadepalli Naga Digitally signed by Tadepalli पुणे/Pune; Naga Murali Mohan Murali Mohan Date: 2026.08.14 09:45:52 दिन ांक/Dated : 13-08-2026 +05'30' TNMM

4 ITA No. 573/PUN/2026 आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपील र्थी / The Appellant प्रत्यर्थी / The Respondent 2. 3. The concerned Pr.CIT, Pune 4. DR, ITAT, „A‟ Bench, Pune 5. ग र्ड फ ईल / Guard file. आदेशानुसार/ BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune

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