COLOUR YELLOW PRODUCTIONS PVT LTD,MUMBAI vs. ITO WARD-16(1)(1), MUMBAI

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ITA 718/MUM/2026Status: DisposedITAT Mumbai05 March 2026AY 2018-194 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal acknowledged that two appeals were filed by the assessee for the same assessment year, one physically and one online, leading to duplication. The assessee requested to withdraw the physically filed appeal.

What were the facts?

The assessee filed an appeal against a penalty order under Section 270A of the Income-tax Act, 1961. Subsequently, the assessee filed an application to withdraw the appeal, stating that it was filed inadvertently and duplicated another appeal already filed online for the same assessment year.

What were the issues?

Whether the appeal should be withdrawn by the assessee due to duplication of proceedings and inadvertent filing.

Which sections of the Income-tax Act were involved?

Section 270A,Section 274

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “G” BENCH MUMBAI

Before: SHRI SAKTIJIT DEY, HONBLE & SHRI GIRISH AGRAWAL

Hearing: 27.02.2026Pronounced: 05.03.2026

O R D E R

PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:

1.

This appeal filed by the assessee is against the order of National Faceless Appeal Centre (NFAC), Delhi vide Order No. ITBA/NFAC/S/250/2025-26/1083930501(1) dated 21.12.2025 passed against the penalty order passed by National Faceless Assessment Centre, Delhi, u/s. 270A of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), dated 20.09.2023 for the Assessment Year 2018-19.

2.

Grounds taken by the assessee are reproduced as under: “I. Penalty notice is invalid 1. The learned CIT(A) erred in law and on facts in confirming the penalty levied u/s 270A and failed to appreciate that the show cause notice issued under Colour Yellow Productions Pvt. Ltd. AY 2018-19 section 274 read with section 270A which is do not specify the limb of section 270A which is attracted i.e. whether it is for underreporting or for misreporting. Therefore, penalty notice is defective and the penalty order is bad in law.

2. The learned CIT(A) failed to appreciate that the show cause notice issued under section 274 read with section 270A as well as penalty order passed u/s 270A of the act does not specify the exact limb of section 270A(9) alleged to have been violated. II. Penalty U/s 270A of Rs 5,78,022/-: 3. The learned CIT(A) erred in law and on facts in confirming the penalty u/s. 270A of the Act of Rs. 5,78,022/- on the basis of the assessee withdrawal deduction claimed u/s 80G in its return in response to notice under section 148 without appreciating that the assessee voluntarily withdrew the claim due to peace and avoid litigation. Thus, A.O. levied the penalty merely based on the assessee withdrawing the claim of donation without any evidence against the assessee to prove the donation was bogus. Thus, there could be no under- reporting or misreporting of income and penalty ought to be deleted.

4. The learned CIT(A) erred in failed to appreciating that the donation was made through banking channels, duly recorded in the books of account, supported by receipts, and no evidence exists against appellant and mere withdrawal of a claim prior to completion of reassessment, without any adverse finding or addition, cannot constitute misreporting of income. Therefore, the case is doesn't falls within the section 270A(9)(a) to (f)..”

3. At the very outset, it is noted that assessee has moved an application dated 13.02.2026, requesting to allow withdrawal of its appeal filed before the Tribunal. Content of this application is reproduced as under:

“Sub: Withdrawal of Appeal No. 718/Mum/2026 - A.Υ. 2018-19 In the case of: Colour Yellow Productions Pvt. Ltd. PAN: AAFCC4036L Respected Sir/Madam, The appellant respectfully submits that two appeals have been filed for the Assessment Year 2018-19 against the order passed by the NFAC dated 21.12.2025. 1. Appeal No. 718/Mum/2026-filed physically (defect notice issued on 13.02.2026)

Colour Yellow Productions Pvt. Ltd. AY 2018-19 2. Appeal No. 462/Mum/2026-filed online (Notice of fixing hearing on 13.04.2026) The appeal filed online bearing IT'A No. 462/Mum/2026 is complete in all respects and has already been fixed for hearing. The physical appeal bearing was filed inadvertently and thus resulted in duplication of the same matter for the same assessment year. In view of the above, the appellant humbly requests that Appeal No. 718/Mum/2026 may kindly be permitted to be withdrawn and treated as such, to avoid duplication of proceedings. The appellant undertakes to prosecute Appeal No. 462/Mum/2026 diligently. Kindly take the above on record and oblige.”

3.

No objection was raised by the ld. DR upon this withdrawal. Accordingly, application made by the assessee is allowed. The appeal is dismissed as withdrawn.

4.

In the result, the appeal of the assessee is dismissed as withdrawn.

Order pronounced in the open court on 05 March, 2026.

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