SREEMA ASSOCIATES PRIVATE LIMITED,RAJARHAT, NEW TOWN vs. ITO, WARD 8(2), , KOLKATA

PER SANJAY AWASTHI, ACCOUNTANT MEMBER 1. The present appeal emanates from order u/s 250 of the Income Tax Act, 1961, passed by the Ld. Commissioner of Income of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereafter “the Ld. CIT(A)], vide order dated 24.04.2025. 1.1 In this case, the Ld. AR pointed out that there was a duality of proceedings for the said penalty u/s 272A(1)(d) of the Act. The Ld. AR pointed out that the Juri ictional Assessing Officer (JAO) had dropped the penalty proceedings vide his order dated 29.08.2022 and the same has been placed for our perusal in the paper book. The Ld. AR has placed on 2 Sreema Associates Pvt. Ltd.

record documents pertaining to initiation of penalty and imposition of the same by the faceless AO, vide order dated 21.02.2023. The Ld. AR also pointed out that the Ground Nos. 1 and 2 of his appeal before the ITAT are on this very same issue. It has been further pointed out that even before the Ld. CIT(A), the assessee had raised the issue that the penalty proceedings were already dropped by JAO and hence there could have been no parallel action by a different AO. However, the Ld. CIT(A) did not specifically adjudicate on this issue and proceeded ahead to confirm the impugned penalty.
1.2
The Ld. DR, on the other hand, relied on the orders of Ld. CIT(A).
2. We have carefully considered the submissions of Ld. AR/DR and have also gone through the records. It is obvious that the penalty u/s 272A(1)(d) of the Act had been dropped by ITO Ward 8(2), Kolkata vide his order dated
29.08.2022. Once a conscious decision was taken by one AO to drop the proceedings then there was no reason why another AO, working with the same set of facts, proceeded ahead to levy the impugned penalty. In light of these facts the assessee deserves the benefit of doubt in terms of applicability of provisions of section 272A(1)(d) of the Act and the impugned penalty deserves to be quashed.
3. In the result, appeal filed by the assessee is allowed.
Order pronounced on 24.07.2025 (George Mathan) (Sanjay Awasthi)
Judicial Member Accountant Member
Dated: 24.07.2025
AK, Sr. P.S.

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Sreema Associates Pvt. Ltd.

Copy of the order forwarded to:
1. Sreema Associates Pvt. Ltd.
2. ITO Ward 8(2), Kolkata
3. CIT(A)
4. CIT

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By order