INCOME TAX OFFICER, WARD-3(1)(2), AHMEDABAD, AHMEDABAD vs. MITEN PATEL HUF, AHMEDABAD

This appeal has been preferred by the Revenue against the Order, dated 06/10/2025, passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the ‘CIT(A)’] whereby the Learned CIT(A) had allowed the appeal against the Penalty Order, dated 25/03/2019, passed under Section 271(1)(c) of the Income Tax Act, 1961 [hereinafter referred to as ‘the Act’] for the Assessment year 2014- 2015. 2. The Revenue has raised the following grounds of appeal:

On the facts and circumstances of the case and in law the Ld. CIT(A) erred in deleting penalty of Rs. 70,57,050/- imposed u/s 271(1)(c) by holding that the corresponding disallowance was made on estimate Assessment Year: 2014-2015 basis, without appreciating peculiar facts of the case in totality.”

When the appeal was taken up for hearing none was present for the Assessee. On perusal of the impugned order we find that though the Learned CIT(A) has deleted the penalty levied under Section 271(1)(c) of the Act none had appeared on behalf of the Assessee before the Learned CIT(A). All the notices issued by the Learned CIT(A) were not responded to by the Assessee. The Learned Departmental Representative has placed on record decision of the Tribunal [dated 09/09/2022, passed in ITA No. 99/AHD/2019] in the quantum proceedings whereby the additions in respect of alleged bogus purchases were confirmed by the Tribunal and the appeal preferred by the Assessee was dismissed since none had appeared on behalf of the Assessee. The impugned order, dated 06/10/2025, passed by the Learned CIT(A) does not make reference to the said decision of the Tribunal passed on 09/09/2022. Given the aforesaid, we set-aside the impugned order passed by the Learned CIT(A) whereby the penalty levied under Section 271(1)(c) of the Act was deleted and restore the issue back to the file of the Learned CIT(A) for denovo adjudication of grounds raised by the Assessee in appeal after taking into consideration the aforesaid decision of the Tribunal. In terms of the aforesaid Ground No. 1 raised by the Revenue is allowed for statistical purposes.

In result, appeal preferred by the Revenue is allowed for statistical purposes.

""यथ"/ The Respondent. 3. संबंिधतआयकरआयु"/ Concerned CIT 4. आयकरआयु"(अपील) / The CIT(A) 5. िवभागीय"ितिनिध, आयकरअपीलीयअिधकरण/ DR, ITAT, 6. गाड"फाईल /Guard file. आदेशानुसार/BY ORDER, उप/सहायकपंजीकार (Dy./Asstt.