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Facts
The assessee, a cooperative society, failed to file its income tax return for AY 2019-20. The case was selected for reassessment, and an addition was made for disallowance of deduction claimed under section 80P of the Act. A penalty under section 271A was also levied.
Held
The Tribunal noted that the Ld. CIT(A) did not discuss the penalty levied under section 270A on merits and instead relied on section 80AC. Therefore, the Tribunal set aside the order to the file of the Ld. CIT(A) for a fresh decision on the penalty merits.
Key Issues
Whether the Ld. CIT(A) properly considered the penalty levied under section 270A on merits. Whether the Ld. CIT(A) provided adequate opportunity to the assessee.
Sections Cited
270A, 271A, 139, 147, 144B, 80P, 80AC
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO, AM & SHRI MANU KUMAR GIRI, JM
O R D E R
PER MANU KUMAR GIRI, JM:
This appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax(Appeals), National Faceless Appeal Centre (NFAC), Delhi, [hereinafter the “Ld.CIT(A)”] dated 11.07.2024 arising out of the order dated 24.09.2024 passed by the Assessing Officer, Assessment Unit, Income Tax Department (hereinafter referred to as the "AO") passed u/s.270A of the Income- tax Act, 1961 (hereinafter "the Act')for the Assessment Year 2019- 20 (hereinafter the "AY").
Malyankil JP Smaraka Social Welfare 2. The assessee has not filed its return of income u/s.139 of the Act for the AY 2019-20. The case of the assessee was selected for re-assessment u/s.147 of the Act. Subsequently, the assessment was completed u/s.147 r.w.s 144B of the Act on 06.03.2024 by making addition of Rs.9,28,516/-towards disallowance of deduction claimed u/s.80P of the Act. Further, Penalty u/s.271A was levied on 24.09.2024 which is affirmed by the ld.CIT(A).
At the outset, the ld.AR referred G.No.3 of the grounds of appeal and pleaded that the ld.CIT(A) has not considered the legality in the light of section 270A(6)(a) of the Act. Per contra, the ld. DR supported the impugned order.
We have heard the rival submissions and perused the record. We find that the ld. CIT(A) has not at all discussed the penalty levied u/s 270A on merits, instead he has only gone by the provisions of section 80AC of the Act. Therefore, we set aside the impugned order to the file of the ld.CIT(A) to decide afresh penalty levied u/s 270A on merits as per the provisions of section 270A of the Act. Needless to say, the ld.CIT(A) before adjudicating the penalty appeal will provide proper and adequate opportunity to the assessee to explain with regard to the penalty levied. Assessee is also directed to co-operate in the penalty appeal.
In the result, the appeal filed by the assessee stands allowed.