SATHAIYA GANAPATHY,PUDUKOTTAI vs. ITO, WARD 1 , BARDOLI

ITA 330/SRT/2025Status: DisposedITAT Surat26 November 2025AY 2015-16Bench: SHRI DINESH MOHAN SINHA (Judicial Member), SHRI BIJAYANANDA PRUSETH (Accountant Member)1 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal deleted the penalty on the addition of Rs. 23,41,300/- as the addition itself was deleted in the quantum appeal. For other confirmed additions, the Tribunal found a violation of natural justice as the penalty appeal was decided without a proper opportunity for the assessee after the quantum relief was granted.

What were the facts?

The assessee did not file an income tax return for AY 2015-16. Information revealed cash deposits, property sale consideration, salary income, and share transactions. The Assessing Officer (AO) made additions for unexplained cash deposits, unexplained investment, salary income without deductions, and undisclosed short-term capital gains.

What were the issues?

Whether penalty under Section 271(1)(c) can be levied on additions that were subsequently deleted in quantum appeal, and whether principles of natural justice were violated in the penalty proceedings.

Which sections of the Income-tax Act were involved?

Section 69A,Section 69,Section 24(b),Section 16(iii),Section 111A,Section 271(1)(c)

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Before: SHRI DINESH MOHAN SINHA & SHRI BIJAYANANDA PRUSETH

For Appellant: Shri Mayank A. Ogriwala, CA
For Respondent: Shri Ajay Uke, Sr. DR
Hearing: 02/09/2025Pronounced: 26/11/2025

PER BIJAYANANDA PRUSETH, AM: These two appeals by the assessee emanate from separate orders passed under section 250 of the Income-tax Act, 1961 (in short, ‘the Act’), both dated 06.02.2025 by the Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, Delhi [in short, ‘CIT(A)’] for the Assessment Year (AY) 2015-16. ITA No.329/SRT/2025 pertains to the quantum appeal whereas ITA No. 330/SRT/2025 is in respect of the consequential penalty order u/s 271(1)(c) of the Act. Since the matter pertains to the same assessee for the same AY, with consent of both parties, they were heard together and a

The order continues below.

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