NEW ERA SOCIAL DEVELOPMENT WELFARE SOCIETY,PATNA vs. DC/AC, CIRCLE 1, PATNA, LOK NAYAK BHAWAN, DAKBANGLOW

ITA 417/PAT/2026Status: DisposedITAT Patna09 October 2026AY 2018-193 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the penalty appeals should be allowed. The reasoning was based on the order of a co-ordinate bench of the Tribunal in ITA No.215/PAT/2026, which had set aside the orders of the CIT(A) and Assessing Officer and remanded the matter for de-novo assessment. The Tribunal reasoned that in light of this decision, the impugned penalty orders should also be set aside. The Assessing Officer was granted liberty to pass penalty orders in accordance with law, consequent to the de-novo assessment, and the assessee was to be provided an opportunity of being heard. The ratio decidendi is that penalty proceedings are consequential to the quantum assessment, and if the quantum assessment is set aside for de-novo assessment, the penalty orders should also be revisited.

What were the facts?

The assessee, New Era Social Development Welfare Society, filed four appeals before the Income Tax Appellate Tribunal (ITAT), Patna Bench, challenging the orders of the NFAC, Delhi. These orders, dated 03.02.2026, confirmed penalties levied under various sections of the Income Tax Act, 1961, for the assessment year 2018-19. The appeals were filed with a delay of 30 days, which the Tribunal condoned. The assessee's primary contention was that a co-ordinate bench of the ITAT, in a related quantum appeal (ITA No.215/PAT/2026), had restored the assessment for the same year to the Assessing Officer for de-novo assessment. The revenue did not dispute this fact but sought dismissal based on the lower authorities' orders.

What were the issues?

1. Whether the penalty appeals for assessment year 2018-19 should be allowed, considering that the related quantum assessment for the same year has been set aside and remanded for de-novo assessment by a co-ordinate bench of the Tribunal? Assessee's contention: The assessee argued that since the quantum assessment for assessment year 2018-19 was restored to the Assessing Officer for de-novo assessment by the ITAT in ITA No.215/PAT/2026, the penalty appeals should also be allowed. This implies that the penalties should not stand independently of the quantum assessment. Revenue's contention: The revenue did not dispute the fact of the remand in the quantum appeal. However, it relied on the orders of the lower authorities (NFAC and Assessing Officer) and sought the dismissal of the penalty appeals.

Which sections of the Income-tax Act were involved?

Section 271AAC(1),Section 270A,Section 272A(1)(d)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA ‘DB’ BENCH

Before: SHRI YOGESH KUMAR U.S. & SHRI RAKESH MISHRA

For Appellant: Shri Pawan Kumar, CA
For Respondent: Shri Ravi Kant Chowdhary, Sr. DR
Hearing: 05.10.2026Pronounced: 09.10.2026

PER BENCH: The captioned four Appeals are filed by the Assessee challenging the order of the NFAC, Delhi [‘Ld. CIT(A)’ for short] dated 03.02.2026, wherein the Ld. CIT(A) has confirmed the order of penalty passed u/s 271AAC(1), 271AAC(1), 270A and 272A(1)(d) of the Income Tax Act, 1961 (“the Act”, for short) pertaining to the assessment year 2018-19 respectively.

2.

Since the above captioned Appeals are filed by the single Assessee, having identical issues to be decided, the captioned Appeals are heard together and decided in this common order.

ITA No.417 to 420/Pat/2026 New Era Social Development Welfare Society, Patna; A.Y: 2018-1

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 271AAC(1)

All 1,211 judgments and leading authorities on Section 271AAC(1) →

Recent GST High Court judgments

Search GST case law →