OSHO ASSOCIATES,GWALIOR vs. JCIT, GWALIOR

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA (DB) BENCH, AGRA BEFORE : SHRI M BALAGANESH, ACCOUNTANT MEMBER AND SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER ITA No. 239/Agr/2026 Assessment Year: 2018-19 Osho Associates, Satyadev Nagar, Vs. JCIT, Aayakar Bhawan, City Gandhi Road, Gwalior-474009 Centre, Gwalior-474009 PAN : AABFO4964C (Appellant) (Respondent) Assessee by Shri Shivam Kumar, CA Department by Shri Anil Kumar, Sr (DR) Date of hearing 19.05.2026 Date of pronouncement 19.05.2026 ORDER PER: SUNIL KUMAR SINGH, J.M.

This appeal is directed against the impugned order dated 16.12.2024 passed in appeal No NFAC/2017-18/10309612 by the ld. Commissioner of Income Tax, NFAC (Delhi) (hereinafter referred to as the “CIT(A) u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”), for the A.Y. 2018-19, wherein ld CIT(A) has dismissed assessee’s appeal, confirming the penalty of Rs. 27,34,460/- levied upon the assessee u/s 271DA of the Act, vide penalty order dated 13.12.2023. 2. At the very outset, it is noticed that according to the report submitted by the registry, the appeal is time barred by 384 days. Ld representative for the appellant assessee has drawn the attention of the bench towards assessee’s delay condonation application, wherein, it has been stated that

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the said delay is caused due to multiplicity of proceedings and considerable time having been consumed in coordinating legal advice and collecting relevant records etc. We treat this cause of delay as sufficient and condone the said delay of 384 days caused in filing this appeal. The appeal is admitted for hearing. 3. Brief facts state that the assessee filed return of income on 31.10.2018, showing total income of Rs. 1,26,26,860/-. The case was selected for complete scrutiny. The assessment order u/s 143(3) r.w.s. 144B of the Act was passed on 23.09.2021, assessing total income at Rs. 8,53,97,400/-. The assessing officer found that four partners of the firm introduced capital of Rs. 27,34,460/- in cash as per following details:- Sr. No. Name of the partner Amount received by M/s Osho Associates from partners (Rs) 1 Shri Dinesh Gupta 7,36,785/- 2 Shri Satish Gupta 6,72,375/- 3 Smt Sudha Gupta 6,50,000/- 4 Smt Emarti Devi Gupta 6,75,300/- Total 27,34,460/-

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ITA No.239/Agr/2026 5. Assessee preferred an appeal before ld CIT(A), who dismissed assessee’s appeal, confirming the penalty order dated 13.12.2023. 6. Assessee has raised five grounds under appeal- (i) capital contributions by partners does not attract section 269ST, (ii) partners and firm are not separate persons in substance, (iii) capital accepted in assessment proceedings, (iv) absence of satisfaction in the assessment order and (v) no tax evasion or unaccounted transaction. 7. Perused the records and heard ld representative for the appellant assessee and ld Sr DR for the respondent revenue. 8. At the very outset, it is worth noting to observe that ld CIT(A) has sustained the penalty order in agreement with the assessing officer in all respects. We note that part responses only against the notice u/s 274 dated 23.06.2023 and show cause notice were submitted by the assessee on 14.07.2023 and 04.12.2023 respectively during the penalty proceedings. The ld assessing officer was, however, not satisfied with assessee’s submissions, observing that although the assessee has responded to the show cause notices in part but no documentary evidence was placed during the proceeding so as to indicate that there were good and sufficient reasons for contravening the provisions of section 269ST of the Act. It is pertinent to mention that the provisions of section 269ST shall not apply to the transactions mentioned in section 269SS as per the first proviso to section 269ST of the Act. In order to ensure the observance of the 3 | P a g e

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principles of natural justice in letter and spirit, we deem it just and appropriate to afford the assessee, a reasonable opportunity of hearing before the assessing officer. We remit the matter back to the file of ld assessing officer, who will afford reasonable opportunity of hearing to the assessee and after taking the submissions of the assessee and documentary evidence, if any, into consideration, pass order a fresh in accordance with law. We order accordingly. We make it clear that we have not made any observations on the merits of the case. The appeal is liable to be allowed for statistical purposes. 9. In the result, assessee’s appeal is allowed for statistical purposes. Impugned orders are set aside.

Order pronounced in the Open Court on - 19.05.2026

Sd/- Sd/- (M BALAGANESH) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER

Dated: 05.06.2026 *Aamir Siddiqui, PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra

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