POONA SHIMS KAMAGARSAHAKARI PATSANSTHA ,PUNE vs. ITO WARD 9(3), PUNE

The Assessee has raised following grounds of appeal:-

That, on facts and in the circumstances of the case, the Ld. CIT (A), NFAC has erred in confirming the penalty u/s 270A of the IT Act, imposed by the Ld. AO to the tune of Rs. 4,18,664/- for FY 2016-17 pertaining to AY 2017-18.

That, on facts and in the circumstances of the case, the Ld. CIT (A), NFAC has erred in passing the impugned order u/s 250 which is in respect of penalty order u/s 270A, without considering the fact that the impugned assessment order passed u/s 144 on 29.12.2019 is still pending before the CIT (A) which is the very foundation of this penalty order. 5. That, on facts and in the circumstances of the case, the Ld. CIT (A), NFAC has erred in not appreciating the fact that the assessment order passed u/s 144 which is the very foundation of this penalty order being contested is an ex parte order wherein sufficient opportunity of being heard was not granted to the appellant. 6. That, on facts and in the circumstances of the case, the Ld CIT(A) NFAC has erred in not appreciating the penalty u/s 270A in the case of the assessee on account of disallowance of 80P deduction cannot be levied on account of underreporting of income in consequence of mis- reporting of income. 7. That, on facts and in the circumstances of the case, the Ld CIT(A) NFAC has erred in not appreciating that the Ld AO has levied the 270A penalty for under reporting of income in consequence of mis-reporting of income in absence of satisfaction of any of the conditions enumerated in section 270A(9) of the IT Act. 8. That, on the facts and in the circumstances of the case, the Ld. CIT (A), NFAC has passed the order u/s 250 without bringing any cogent material on record to substantiate the findings so recorded in the appellate order. 9. That, on the facts and in the circumstances of the case, the Ld. CIT (A), NFAC has passed the order u/s 250 in a mechanical way, without application of mind and without appreciating the overall facts of the case. 10. That, the appellant may kindly be allowed to add, alter or modify any other modify any other points to the grounds of appeal

We have heard Ld. DR and perused the record placed before us. We note that the Ld. CIT(A) has merely dismissed the appeal in limine, without discussing anything on merits of the issues. The settled position of law mandates that the Id.CIT(A) to dispose of the appeal by adjudicating the issues raised in appeal on merits as contemplated u/s 250(6) of the Act giving reasons thereof. In this regard, reference is being made to a decision of the Hon'ble Bombay High Court in the case of Pr.CIT(Central) Vs. Premkumar Arjundas Luthra (HUF) Bombay (2017) 297 CTR 614 (Bombay) wherein it was held that Id.CIT(A) NFAC is obliged to dispose of the appeal on merits even in an ex-parte order. Considering the totality of the facts of the case and there being no objection from the side of Ld. Departmental Representative, we in the interest of justice deem it proper to give an opportunity to the assessee. In view thereof without dwelling into merits of the issue, the issues on merits in the instant appeals are being remitted to the file of Id.CIT(A) for necessary adjudication. Assessee is at liberty to file any evidence as it deems expedient and Ld.CIT(A) shall consider all the submissions of the assessee and pass the orders in conformity with the provisions envisaged u/s 250(6) of the Act. Assessee is also directed to provide correct email id to the department for receiving the hearing notices from the ITBA portal. Assessee is further directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause, failing which the Ld.CIT(A) shall be free to proceed in accordance with law. Findings of the Ld. CIT(A) are set aside and effective grounds of appeal raised by the assessee for the year under appeal are allowed for statistical purposes.

In the result, the appeal of the assessee is allowed for statistical purposes.