RAAKESH SAJAN SUREKA,PUNE vs. ACIT CIRCLE 2, PUNE

The brief facts of the case are that, the assessee is engaged in a business of Trading in Iron and Steel under the name of M/s Mayooraa Metal Trade Corporation and the assessee has filed return of income for the Assessment Year 2009-10 on 06.10.2009 declaring a total income of Rs. 27,75,750/- and the case was selected for scrutiny and assessment was completed u/sec 143(3) of the Act determining a total income of Rs. 29,08,090/- vide order dated 07.12.2011. Whereas the Assessing Officer(A.O) based on the information from the Sales Tax Department through DGIT (Inv.) Mumbai found that the assessee was one of the beneficiaries of transactions shown by operators who were providing accommodation entries of bogus purchases without any actual movement of goods in respect of the seven parties aggregating to Rs. 7,23,43,902/-. The Assessing Officer has reason to believe that income has escaped assessment and notice was issued u/sec 148 of the Income Tax Act, 1961 and subsequently the notice u/sec 143(2) and 142(1) was issued. Meanwhile, the assessee has filed return a letter to treat the return of income filed for the A.Y. 2009-10 originally as due compliance and the assessee was called to submit the various financial details and to substantiate purchase of the goods along with evidences. The.AO has dealt on the details in respect of the transactions with the parties and was not satisfied with the explanations and observed that the transactions are not genuine and estimated the income based on the profit element, which works out to Rs. 56,57,294/- and assessed the total income of Rs.85,65,380/- and passed the order u/sec 143(3) r.w.s. 147 vide order dated 15.03.2015. 3. Subsequently, penalty proceedings are initiated and, the AO has levied penalty u/sec 270(1)(C) for Rs. 10,89,322/- for furnishing inaccurate particulars vide order dated 30.01.2020. ITA 737/PUN/2026 Raakesh Sajun Sureka, Pune

Aggrieved by the penalty order, the assessee has filed an appeal before the CIT(A), whereas the CIT(A) has considered grounds of appeal, statement of facts, finding of penalty proceedings and submissions of the assessee and found that there is no proper compliance by the assesse and has confirmed the action of the AO and dismissed the assessee’s appeal. Aggrieved by the order of the CIT(A), the assesse has filed the appeal with the Hon'ble Tribunal.

At the time of hearing, Ld. AR submitted that CIT(A) has erred in confirming the levy of penalty by the AO by overlooking the facts and submissions. The Ld. AR substantiated the submissions with the facts and prayed for allowing the appeal. Per Contra, Ld. DR relied on the order of the CIT(A).

We heard the rival submissions and perused the material on record. The sole matrix of the disputed issue envisaged by the Ld.AR that the CIT(A) has erred in sustaining the penalty without providing proper opportunity and has overlooked the facts and material evidences and whereas the assesse has filed all the details before the lower authorities and the CIT(A) has not considered the documents and information of the assesse. Prima-facie, the CIT(A) has dealt on the findings of the AO and there are no proper findings on the submissions/evidences of the assessee filed in the proceedings referred and has not allowed the grounds of appeal. Therefore, we considering the overall facts, circumstances and principles of natural justice shall provide with one more opportunity of hearing and accordingly restore the disputed issue to the file of the CIT(A) for afresh adjudication and the shall provide adequate opportunity of being heard to the assessee and the assessee should also cooperate in submitting the information for early disposal of appeal. And the grounds Raakesh Sajun Sureka, Pune

In the result, appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the open Court on 29th June, 2026. MANISH BORAD PAVAN KUMAR GADALE (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) Pune; नििधांक / Dated:June, 2026. Abhishek

The Pr. CIT concerned. नवभधगीयप्रनतनिनर्,आयकिअपीलीयअनर्किण, “B”बेंच, 4. पुणे/ DR, ITAT, “B” Bench, Pune. गधर्ाफ़धइल / Guard File. 5. आिेशधिुसधि / BY ORDER, ////