SHARDABEN DHANJIBHAI SAVANI,SURAT vs. ITO, WARD 2(3)(4), SURAT

Facts

The assessee, Shardaben Dhanjibihai Savani, filed an ITR with non-business income, and her case was selected for scrutiny due to large import/export. Due to non-compliance with notices from the AO, a quantum addition of Rs. 1.42 Cr was made, and penalties under sections 271A(1)(d) and 271AAC(1) were imposed. The CIT(A) dismissed the appeal as the assessee made no submissions, leading to the current appeals before the ITAT.

Held

The Tribunal condoned a 32-day delay in filing the appeal. For ITA 385/SRT/2025 (quantum assessment), the matter was remanded to the AO for fresh adjudication, subject to a cost of Rs. 5,000. For ITA 386/SRT/2025 (penalty u/s 271AAC(1)), the penalty was also restored to the AO for fresh adjudication. For ITA 387/SRT/2025 (penalty u/s 271(1)(d)), the penalty was partly allowed and reduced to Rs. 10,000 for a single default, considering the tax consultant's mistake and subsequent compliance.

Key Issues

1. Whether the quantum assessment addition should be remanded for fresh adjudication considering the assessee's claim of not receiving physical notices. 2. Whether penalties imposed under sections 271A(1)(d) and 271AAC(1) for non-compliance are justified.