MOHAN RITI,RANCHI vs. ITO, WARD-2(1), RANCHI

ITA 380/RAN/2025Status: DisposedITAT Ranchi26 May 20264 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the quantum addition under Section 69A was already deleted in the assessee's favour on the grounds that the source of cash was duly explained, the penalty under Section 271AAC(1) was not imposable. Therefore, the penalty was deleted.

What were the facts?

The assessee deposited a significant amount of cash in her bank account during the demonetization period. No return of income was filed, leading to an ex-parte assessment and imposition of penalty under Section 271AAC(1). The assessee argued that the deposits were explained as trading receipts and that the penalty was levied without proper notice.

What were the issues?

Whether penalty under Section 271AAC(1) is sustainable when the underlying addition under Section 69A has been deleted. Whether proper notice was served on the assessee for the appellate proceedings.

Which sections of the Income-tax Act were involved?

Section 271AAC(1),Section 69A,Section 144,Section 142(1),Section 44AD

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI

Before: SHRI SONJAY SARMA & SHRI RATNESH NANDAN SAHAY

For Appellant: Shri M.K. Choudhary, A.R
For Respondent: Shri Kailash Gautam, Sr. DR
Hearing: 16/04/2026Pronounced: 26/05/2026

PER: RATNESH NANDAN SAHAY, A.M.

1.

This appeal by the assessee is directed against the order of the learned National Faceless Appeal Centre (NFAC), Delhi [in short, the ld. CIT(A)] dated 18/09/2025 for the Assessment Year (AY) 2017-18. The assessee has raised following grounds of appeal: "1 For that the penalty imposed u/s 271AAC(1) amounting to Rs. 3,90,703/- is unjustified, arbitrary and without cogent basis.

2.

For that Ld. CIT(A) erred in confirming the penalty on the alleged addition of Rs. 65,11,720/- u/s 69A in the Bank Account without appreciating that in the quantum appeal order Ld. CIT(A), NF

The order continues below.

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