ADVAITA TRADING PRIVATE LIMITED,MUMBAI vs. WARD 12(1)(1), MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “A”, MUMBAI BEFORE SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER AND SHRI ANIKESH BANERJEE, JUDICIAL MEMBER ITA No.7857/Mum/2025 (Assessment year: 2017-18)

Advaita Trading Private Ltd. vs ITO, Ward 12(1)(1), Mumbai Room No.5, Kala Darshan Mumbai-400067 CHSL. Mumbai-400067 PAN:AAACT6412C APPELLANT RESPONDENT Assessee by : Shri Chanchal Jain Revenue by : Shri Rajesh Kumar Yadav (CIT .DR) Date of hearing : 16/04/2026 Date of pronouncement : 22/04/2026 O R D E R Per: Anikesh Banerjee (JM): The instant appeal of the assessee filed against the order of the NFAC, Delhi [for brevity the “Ld. CIT(A)”], order passed under section 250 of the Income Tax Act 1961 (for brevity ‘the Act’) for Assessment Year 2017-18, date of order 19.09.2025. The impugned order emanated from the order of the Assessment Unit Income Tax Department (for brevity the ‘Ld. AO’) order passed under section 270A of the Act date of order 07.02.2025.

2 ITA No.7857/Mum/2025 Advaita Trading P. Ltd. 2. The brief facts of the case are that the assessee filed the return by declaring total income of Rs.13,46,790/-. The assessee has declared book profit amount to Rs.31,77,709/- u/sec. 115JB of the Act. The case was selected for scrutiny the assessment was completed with an addition amount to Rs.18,22,500/- u/sec. 68 of the Act. The Ld. AO initiated the penalty proceeding u/sec. 270A of the Act. Considering the assessee’s submission the penalty was levied for misreported of income at the rate of 200% of tax payable which comes to Rs.5,36,136/-. Aggrieved assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) passed an order ex parte and rejected the appeal of the assessee. Being aggrieved assessee filed an appeal before us. 3. The Ld. AR submitted that, despite several opportunities of hearing granted by the Ld. CIT(A), the assessee could not appear before the appellate authority. It was further contended that the quantum appeal, forming the basis of the impugned penalty, was heard by the Coordinate Bench of the ITAT, Mumbai ‘SMC’ Bench bearing ITA No. 7856/Mum/2025 and, vide order dated 15.04.2026, the matter was restored to the file of the Ld. CIT(A) for fresh adjudication. The relevant observations of the Coordinate Bench of the ITAT, Mumbai ‘SMC’ Bench in respect of the quantum appeal are reproduced as under: “The appeal is heard. Delay is condoned. The case is remanded to the file of the Ld. CIT(A) for decision afresh, suffice it to say, by affording reasonable opportunity of being heard to the Assessee. We clarify that in case of subsequent default, the Assessee may not be entitled to any leniency. Order is pronounced in open court.” 4. The Ld. DR argued and relied on the order of the revenue authorities.

3 ITA No.7857/Mum/2025 Advaita Trading P. Ltd. 5. We have heard the rival submissions and perused the material available on record. It is observed that the impugned penalty under section 270A of the Act has been levied pursuant to the addition made under section 68 of the Act. The Ld. CIT(A) has dismissed the appeal of the assessee ex parte without adjudicating the issue on merits. We further note that the quantum addition, forming the very basis of the impugned penalty, has already been restored by the Coordinate Bench of the ITAT, Mumbai ‘SMC’ Bench to the file of the Ld. CIT(A) for fresh adjudication. In our considered view, since the penalty proceedings are intrinsically linked with the outcome of the quantum proceedings, and the quantum matter itself has been remanded to the file of the Ld. CIT(A), it would be just and proper, in the interest of justice, to restore the present penalty appeal also to the file of the Ld. CIT(A) for adjudication afresh. The Ld. CIT(A) shall decide the issue of penalty under section 270A of the Act along with the quantum proceedings, in accordance with law, after affording reasonable opportunity of being heard to the assessee. Needless to say, the assessee shall cooperate in the appellate proceedings and shall not seek unwarranted adjournments. The Ld. CIT(A) is directed to pass a reasoned and speaking order on merits. Hence, the appeal of the assessee is allowed for statistical purposes. 6. In the net result, the appeal of the assessee bearing ITA No.7857/Mum/2025 is allowed for statistical purpose. Order pronounced in the open court on 22nd day of April 2026. Sd/- Sd/- (OM PRAKASH KANT) (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai,िदनांक/Dated: 22/04/2026 SAUMYASr.PS

4 ITA No.7857/Mum/2025 Advaita Trading P. Ltd.

Copy of the Order forwarded to: 1. अपीलाथ�/The Appellant , 2. �ितवादी/ The Respondent. 3. आयकरआयु� CIT 4. िवभागीय�ितिनिध, आय.अपी.अिध., मुंबई/DR, ITAT, Mumbai 5. गाड�फाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar), ITAT, MUMBAI