BRAVO REALCON LLP,INDORE vs. CIT(APPEALS)-3,BHOPAL, BHOPAL

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ITA 920/IND/2025Status: DisposedITAT Indore30 April 2026AY 2022-2310 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that a penalty under Section 272A(1)(d) cannot be sustained if the assessment is completed on merits under Section 143(3) without any adverse inference for non-compliance. The Tribunal also noted that the facts were identical to other group concerns where similar penalties were deleted.

What were the facts?

The Assessing Officer imposed penalties on the assessees for alleged failure to comply with notices under Section 142(1). However, the assessments were ultimately completed under Section 143(3) after considering the assessees' submissions, indicating cooperation in the assessment proceedings.

What were the issues?

Whether penalty under Section 272A(1)(d) is leviable for non-compliance with notices when assessment is completed on merits under Section 143(3).

Which sections of the Income-tax Act were involved?

Section 142(1),Section 143(3),Section 144,Section 272A(1)(d)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI

For Appellant: Shri Prabhpreet Sheetal, AR
For Respondent: Shri Ashish Porwal, Sr. DR
Hearing: 28.04.2026Pronounced: 30.04.2026

आदेश/ O R D E R

Per Bench:

The captioned two (2) appeals have been filed by two different assessees, the

details are as under:

ITA No. Appellant/ Impugned order Original A.Y. Assessee proceedings

1 914/Ind/2025 Bravo Realties Order of first- Penalty order 2022-23 appeal dated dated 28.08.2025 14.12.2023 passed by passed by learned CIT(A)-3, learned ACIT, Bhopal [“Ld. Central-2, CIT(A)”] Indore [“Ld. AO”] u/s 272A(1)(d)

2 920/Ind/2025 Bravo Realcon LLP Order of first- Penalty order 2022-23 appeal dated dated 28.08.2025 21.12.2023 passed by passed by

learned CIT(A)-3, learned ACIT, Bhopal [“Ld. Central-2,

CIT(A)”] Indore [“Ld. AO”] u/s 272A(1)(d)

2.

In these matters, the Ld. AO has imposed a penalty of Rs. 30,000/-

each, on account of the assessee's alleged failure to comply with notices

issued u/s 142(1) of the Income Tax Act, 1961 during the course of

scrutiny-assessments framed by Ld. AO. However, the Ld. AR for assessee

drew our attention to the copies of assessment-orders placed in case files

and demonstrated that in these cases, the assessments were ultimately framed u/s 143(3) of the Act, after duly considering the submissions made

by the assessee during the course of scrutiny proceedings. It is evident from

the record that the AO found no occasion to resort to ex-parte or best

judgement assessment u/s 144, which itself is indicative of the fact that the

assessee had participated in and co-operated with assessment proceedings.

The Ld. AR further brought to our notice that in identical cases involving

group concerns of assessee, the penalties imposed by respective AOs have

already been deleted by the very same office of Ld. CIT(A). Copies of the

following appellate orders were placed before Bench for reference:

(i) Bravo Infrabuild Pvt. Ltd. – order dated 26.02.2026 in Appeal No.

CIT(A)-3/BPL/IT-10032/2021-22

(ii) Bravo Realties Private Ltd. - order dated 26.02.2026 in Appeal No.

CIT(A)-3/BPL/IT-10027/2021-22

(iii) Prasan & Company – order dated 26.02.2026 passed in Appeal No.

CIT(A)-3/BPL/IT-10024/2021-22

It was accordingly urged that the same view ought to be applied in present

appeals and the penalties be deleted.

3.

Ld. DR for revenue, though dutifully supporting the orders of the

lower authorities, was unable to controvert or distinguish the submissions

advanced by Ld. AR nor could he point out any distinguishing feature in the facts of present cases vis-à-vis the matters of group concerns already

decided by Ld. CIT(A) in favour of those concerns/assessees.

4.

We have carefully considered rival submissions of both sides and

perused the material placed on record. We find that the facts and

circumstances in present cases are identical to those in the cases of other/

group concerns referred to above, wherein the Ld. CIT(A) has already

granted relief by deleting the penalties. For the sake of ready reference, the

order passed by Ld. CIT(A) in one such case is reproduced hereunder:

5.

The position of law is well-settled that a penalty u/s 272A(1)(d) cannot be sustained where the assessment itself has been completed u/s 143(3) upon consideration of the assessee's submissions, and no adverse inference

is finally drawn by AO for non-compliance. The completion of assessment on merits clearly demonstrates that the alleged non-compliance, if any, was

neither willful nor contumacious and the very purpose of the notices stood fulfilled. In such circumstances, the mechanical imposition of penalty without establishing deliberate default on the part of the assessee is neither

warranted nor sustainable in law. That apart, there is no justification to sustain the penalties when the facts are identical to cases of group/other

concerns and the Ld. CIT(A) has already taken a consistent view to delete penalties in those assessees. Therefore, we are inclined to allow present appeals and the penalties imposed by the AO, amounting to Rs. 30,000/- in

each case, are hereby directed to be deleted. Ordered accordingly.

6.

Resultantly, these appeals are allowed.

Order pronounced in open court on 30/04/2026

Sd/- Sd/-

(PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 30/04/2026 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order Sr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore

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