SARIKA ZENDE,PUNE vs. INCOME TAX OFFICER, WARD-14(5), PUNE, PUNE

Although, a number of grounds have been raised by the assessee, however, these all relate to the order of the Ld. CIT(A) in confirming the penalty of Rs.15,48,108/- levied by the Assessing Officer u/sec.270A of the Income Tax Act, 1961 (in short "the Act"). 4. Facts of the case, in brief, are that the assessee is an individual and engaged in the business of sale and purchase of housekeeping materials and provision of manpower services to private and non-government entities. She filed her return of income on 11.11.2020 admitting total income of Rs.30,06,080/- and claiming refund of Rs.3,29,430/-. Subsequently, the assessee filed a revised return on 29.03.2021 admitting income of Rs.15,70,920/- and claiming refund of Rs.10,86,080/-. In the revised return, the assessee claimed deduction of statutory dues paid in F.Y. 2019-2020 amounting to Rs.24,25,158/- on payment basis which were disallowed in the earlier years on account of delay in payment as per the provisions of sec.43B of the Act, the details of which are as under :

In the assessment order, the Assessing Officer found that such claim of assessee is incorrect and, therefore, he disallowed the deduction of Rs.24,25,158/- u/sec.43B of the Act. 6. The assessee filed an appeal before the Ld. CIT(A). In the meantime, the Assessing Officer initiated penalty proceedings u/sec.270A of the Act for under-reporting of income in consequence of mis-reporting thereof and issued show cause notice u/sec.274 r.w.s.270A of the Act. Rejecting the various explanations given by the assessee, the Assessing Officer levied penalty of Rs.15,15,794/-. The Assessing Officer, similarly noted that interest payment of Rs.2,07,144/- has been debited to P & L A/c and such interest was on account of late payment of service tax liability of earlier years. Rejecting the various explanation given by the assessee, the Assessing Officer disallowed the amount of Rs.2,07,144/- to the total income of the assessee and initiated penalty proceedings u/sec.270A of the Act and levied penalty of Rs.32,314/-. The penalty levied by the Assessing Officer u/sec.270A of the Act totaling to Rs.15,48,108/- was confirmed by the Ld. CIT(A). 7. Aggrieved with such order of the Ld. CIT(A), the assessee is in appeal before the Tribunal.

Learned Counsel for the Assessee, at the outset, submitted that the quantum appeal has been restored to the file of Ld. CIT(A) with certain directions. Therefore, he has no objection if the matter is restored to the file of Ld. CIT(A) for fresh adjudication of the issue. 9. The Learned DR has no objection to the above proposition. 10. After hearing both the sides, we find the quantum proceedings have been restored to the file of Ld. CIT(A) for adjudication of the issue afresh. We, therefore, restore the issue of penalty confirmed by the Ld. CIT(A) to his file for fresh adjudication. The grounds raised by the assessee are accordingly allowed for statistical purposes. 11. In the result, appeal of the assessee is allowed for statistical purposes.