ARUN RAVAN PATIL,DHULE vs. THE ITO, WARD-1, DHULE, DHULE

IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE BENCH “A” BEFORE SHRI RAMA KANTA PANDA, VICE PRESIDENT AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER I.T.A.No.386/PUN/2026 (Assessment Year: 2018-19) Arun Ravan Patil, ITO, Ward-1, Near Grampanchayat Aayakar bhavan, Karyalay, Garted, Opp. MSEB, Dulhe-424211, Vs. Maharashtra, Sakri Road PAN: AUWPP4112C Dhule-424001 Maharashtra.

(Appellant) (Respondent) For Assessee : Shri.Kishor B Phadke.AR For Revenue : Shri.Rajesh Haladkar.Sr.DR Date of Hearing : 30.07.2026 Date of Pronouncement : 11.08.2026 ORDER PER PAVAN KUMAR GADALE, JUDICIAL MEMBER:- The assessee has filed the appeal against the order of CIT(A)/NFAC, Delhi passed u/sec 270AAC(1) and u/sec250 of the Income Tax Act. The assessee has raised the grounds of appeal challenging the order of the CIT(A) in sustaining the penalty levied by the Assessing Officer. 2. The brief facts of the case are that, the Assessing Officer (A.O.) has received information that the assessee has made substantial cash deposits and cash withdrawals in the bank account and the assessee has not filed the return of income for the A.Y. 2018-19. The Assessing Officer has reason to believe that the income has escaped assessment and fallowed the due process of law and passed the order u/sec148A(d) of the Act on 29.03.2022 and issued notice u/sec148 of the Act on 30.03.2022 and there was no response. Subsequently, the notice under Section 142(1) of the Act was issued to the assessee on the various dates and also a show cause notice and there was no compliance by the assessee therefore, the AO considering the information available on record invoked the provisions of section 144 of the Act and obtained the bank statements from the bank by issue of notice u/sec133(6) of the Act and made addition of unexplained money and assessed the total income of Rs. 2,51,84,876 and passed the order u/sec 147 r.w.s. 144 and 144B of the Act dated 01.03.2023. Subsequently, the A.O has initiated penalty proceeding and issued notice u/sec 270AAC(1)of the Act and the assessee was provided opportunities to explain the reasons for under- reporting income and there was no compliance. Finally the A.O levied penalty of Rs.19,45,531/- and passed the order u/sec 270AAC(1) of the Act dated 14.09.2023. 3. Aggrieved by the order, the assessee has filed the appeal before the CIT(A). Whereas the CIT(A) has considered the grounds of appeal, statement of facts, submissions of the assessee and findings of assessing officer, but has sustained the levy of penalty by the AO and dismissed the appeal. Aggrieved by the CIT(A), assessee has filed the appeal before the Hon'ble Tribunal. 4. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the action of the A.O in levying of penalty overlooking the facts and submissions. Further the Ld.AR mentioned that in the quantum appeal, against the CIT(A) order i.e on filling the appeal with the Honble Tribunal , the ITAT has restored the disputed issues to the file of the assessing officer and hence the penalty cannot be sustained and in any case, the penalty matter may be restored to the A.O And the Ld.AR supported the submissions with the copy of the ITAT order. Per Contra, the Ld. DR relied on the order of the CIT(A). 5. We heard the rival submissions and perused the material on record. The sole matrix of the dispute envisaged by the Ld.AR that the CIT(A) has erred in sustaining levy of penalty u/sec.270AAC(1) of the Act, though the assessee has not under reported any income. The Ld.AR mentioned that in the quantum appeal, against the CIT(A) order i.e on filling the appeal with the Honble Tribunal , the ITAT has restored the disputed issues to the file of the assessing officer and hence the penalty cannot be sustained and in any case, the penalty matter may be restored to the A.O. Since, the disputed issue in the quantum appeal is restored to the file of the Assessing Officer by the Honble Tribunal. We consider it appropriate to restore penalty issue also to the file of the Assessing officer and adjudicate afresh on merits and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information. And, we allow the grounds of appeal of the assessee for statistical purposes. 6. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 11th August, 2026. Sd/- Sd/- RAMA KANTA PANDA PAVAN KUMAR GADALE (VICE PRESIDENT) (JUDICIAL MEMBER)

Pune; दिन ांक / Dated: 11th August, 2026 Abhishek Mohan Abhishek Mohan Digitally signed by Abhishek Mohan Date: 2026.08.11 00:35:20 +05'30' आिेशकीप्रतितितिअग्रेतिि / Copy of the Order forwarded to : अिीि र्थी / The Appellant. 1. प्रत्यर्थी / The Respondent. 2. 3. The Pr. CIT concerned. 4. तिभ गीय प्रतितनति, आयकर अिीिीय अतिकरण, “A” बेंच, पुणे/ DR, ITAT, “A” Bench, Pune. ग र्डफ़ इि / Guard File. 5. //True copy//

आिेश नुस र / BY ORDER, Assistant Registrar, आयकर अिीिीय अतिकरण,/ ITAT, Pune.