BALDEV SINGH,JASWAN KANGRA, HIMACHAL PRADESH vs. INCOME TAX OFFICER WARD, NURPUR, NURPUR, KANGRA

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ITA 276/CHANDI/2025Status: DisposedITAT Chandigarh18 August 2025AY 2017-18Bench: SHRI RAJPAL YADAV (Vice President), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)3 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal observed that the quantum assessment, which formed the basis for these penalties, had already been restored to the Assessing Officer for fresh assessment. Therefore, the Tribunal set aside the penalty orders and remanded the issue of penalties to the Assessing Officer for fresh consideration based on the outcome of the re-assessment.

What were the facts?

The assessee was penalized under Section 271A for non-maintenance of books of accounts and under Section 271B for failure to get accounts audited for AY 2017-18, following a best judgment assessment. These penalties were confirmed by the CIT(A).

What were the issues?

Whether penalties under Section 271A and Section 271B could be sustained when the underlying quantum assessment had been set aside and remanded for fresh adjudication.

Which sections of the Income-tax Act were involved?

Section 271A,Section 271B,Section 147,Section 144,Section 44AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, CHANDIGARH

Before: HON’BLE SHRI RAJPAL YADAV & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

Heard together (2 matters)

ITA No.276/CHANDI/2025
ITA No.277/CHANDI/2025

Read from the judgment's own cause title. This page is filed under one of them.

(िनधा�रण वष� / Assessment Year: 2017-18) & 2. आयकरअपीलसं./ (िनधा�रण वष� / Assessment Year: 2017-18) Shri Baldev Singh ITO-Ward Nurpur बनाम/ Vs. Village Dadoa, Post Office Bari Near Chugan Baxar Tehsil Jaswan, Kangra (HP) 176501 Teshsil Nurpur (HP) -176202 �थायीलेखासं./जीआइआरसं./PAN/GIR No. BAAPS-3522-A (अपीलाथ�/Appellant) (��थ� / Respondent) : अपीलाथ�कीओरसे/ Appellant by S/Shri Ashok Goyal and Sifatpreet Singh (CAs) – : Ld. ARs ��थ�कीओरसे/Respondent by : Shri Vivek Vardhan (Addl. CIT) – Ld. Sr. DR सुनवाई की तारीख / Date of Hearing : 18-08-2025 घोषणा की तारीख / Date of Pronouncement : 18-08-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. In these twin appeals, the assessee assails levy of penalty of Rs.25,000/- u/s 271A and penalty of Rs.1,33,396/- u/s 271B of the Act for non-maintenance of books of accounts and failure to get the accounts audited respectively. The impugned orders have been passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] both dated 31-01-2025. Having & 277/Chandi/2025 Assessment Year: 2017-18 heard rival submissions and upon perusal of case records, the appeals are disposed-off as under.

2.

The assessee has been assessed for AY 2017-18 on best judgment basis u/s 147 r.w.s. 144 of the Act on 23-08-2021. The Ld. AO assessed income of Rs.10.40 Lacs. It was noted that the assessee’s turnover had exceeded Rs.1 Crores but the assessee did not maintain prescribe books of accounts as required u/s 44AA. Consequently, Ld. AO imposed impugned penalties u/s 271A and 271B for non-maintenance of books of accounts as well as for failure to get the accounts audited respectively. The Ld. CIT(A) confirmed both the penalties against which the assessee is in further appeal before us.

3.

The Ld. AR advanced argument and stated that the assessee was running a milk-booth on commission basis. Therefore, only commission income would constitute turnover of the assessee. It has also been submitted that the quantum assessment has already been restored back by first appellate authority to Ld. AO for fresh assessment.

4.

Considering the above stated facts, since quantum assessment has already been restored back to Ld. AO which would have material bearing on fate of impugned penalties, we deem it fit to set aside both the orders and restore the issue of penalties back to the file of Ld. AO for fresh consideration in the light of quantum assessment so framed against the assessee.

5.

Both the appeals stand allowed for statistical purposes. Order pronounced on 18-08-2025. Sd/- Sd/- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 18-08-2025. आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF ASSISTANT REGISTRAR

ITAT CHANDIGARH

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