PANCHWADKAR SHRIHARI PURSHOTTAM (HUF),SOLAPUR vs. INCOME TAX OFFICER WARD 2, PANDHARPUR

Briefly stated, the facts of the case are that the assessee is an HUF owing rural agricultural land. Based on the information flagged on INSIGHT Portal, it was found that the assessee had earned interest income of Rs.31,96,652/- during the AY 2017-18, however, no return of income was filed by the assessee for the relevant AY. The case of the assessee was thus reopened u/s 147 of the Act by issue of notice u/s 148 of the Act after following the mandated provisions of law. Since, the assessee failed to respond to the various notices issued by the Ld. AO during the assessment proceedings, the Ld. AO completed the assessment ex-parte by making addition of Rs.31,96,652/- as income from other sources. Simultaneously, the Ld. AO initiated penalty proceedings u/s 270A of the Act. As there was

Aggrieved, the assessee filed an appeal before the Ld. CIT(A)/NFAC who dismissed the appeal of the assessee and confirmed the penalty of Rs.16,15,028/- levied by the Ld. AO u/s 270A of the Act.

Dissatisfied, the assessee is in appeal before the Tribunal challenging the above order of the Ld. CIT(A)/NFAC.

At the outset, the Ld. AR submitted that the Co-ordinate Bench of the Tribunal in ITA No. 2928/PUN/2025 for AY 2017-18 in assessee’s own case has set aside the quantum appeal of the assessee to the file of the Ld. CIT(A)/NFAC for de-novo adjudication. He has therefore submitted that the present penalty appeal may also be set aside to the file of the Ld. CIT(A)/NFAC to adjudicate the same once the quantum appeal of the assessee is decided.

The Ld. DR, on the other hand, supported the order of the Ld. CIT(A)/NFAC.

We have heard the Ld. Representatives of the parties and perused the material available on record. We find that the Ld. AO has passed the impugned penalty order ex-parte qua the assessee imposing the penalty of Rs.16,15,028/- u/s 270A of the Act due to misreporting of income which has been confirmed by the Ld. CIT(A)/NAFC. We have perused the order of the Pune Tribunal in assessee’s own case in ITA No. 2928/PUN/2025 for AY 2017-18, dated 11.02.2026 and find that the Tribunal has set aside the quantum appeal of the assessee to the file of the Ld. CIT(A)/NFAC for de- novo adjudication on merits of the case. Since, the quantum appeal of the assessee has been set aside to the file of the Ld. CIT(A)/NFAC for de-novo adjudication, we deem it fit to set aside the present penalty appeal also to the file of the Ld. CIT(A)/NFAC to decide afresh once the quantum appeal of the assessee is decided. Accordingly, the grounds raised by the assessee are allowed for statistical purposes.

In the result, the appeal of assessee is allowed for statistical purposes.