S D ENCOMM LLP,KOLKATA vs. I.T.O., WARD - 33(2), KOLKATA

Per Rajesh Kumar, AM:

These are appeals preferred by the assessee against the orders of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 08.10.2025 for the AY 2021-22. The penalty was levied u/s 271AAC(1) of the Income-tax Act, 1961 (the Act) vide order dated 27.06.2023 by the ld. AO.

ITA No. 3179/KOL/2025 2. The ld. Counsel for the assessee submitted that before the bench that the assessee has filed all the evidences/details before the AO, however, the same were not considered by the ld. AO which has resulted into violation of principle of natural

2.1. The ld. DR did not object to the prayer of the Counsel.

2.2. After hearing the rival contentions and perusing the materials available on record, we find that the appeal of the assessee has been dismissed by the ld. CIT (A) in limine without condoning the delay of 425 days. In the interest of justice and fair play, the delay in filing the appeal before ld. CITY(A) is hereby condoned as the same is for bonafide and genuine reasons. We also find that the ld. AO has passed the order without considering the evidences filed by the assessee. Consequently, we restore the appeal of the assessee to the file of the ld. AO for denovo adjudication after taking into account all the evidences and submission of the assessee.

2.3. The appeal of the assessee is allowed for statistical purposes.

ITA No. 3180/KOL/2025 3. At the outset, the ld. Counsel for the assessee submitted that the appeal of the assessee is against the order of ld. CIT (A) confirming the penalty imposed by the ld. AO u/s 271AAC(1) of the Income-tax Act, 1961 (the Act). Since, we restored the quantum appeal of the assessee bearing ITA No. 3179/KOL/2025 in above para, therefore, this penalty order has no legs to stand.

3.1. After hearing the rival contentions and perusing the materials available on record, we find that the penalty imposed by the AO and as confirmed by the ld. CIT (A) has no legs to stand as quantum appeal has been restored to the file of the ld. AO for denovo adjudication. Consequently, we delete the penalty as it has no legs to stand with a liberty to the ld. AO to re-initiate the penalty proceedings in the set aside proceedings in accordance with law , if he deems it fit.

Order pronounced on 29.06.2026.

Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 29.06.2026 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT DR, ITAT, 4. 5. Guard file. BY ORDER, True Copy//

Asst. Registrar Income Tax Appellate Tribunal, Kolkata