COLOUR YELLOW PRODUCTIONS PVT LTD,MUMBAI vs. ITO WARD-16(1)(1), MUMBAI
Facts
The assessee was levied a penalty under section 270A of the Income-tax Act, 1961, for Assessment Year 2018-19, which was confirmed by the NFAC. The assessee filed an appeal (ITA No. 718/Mum/2026) but subsequently discovered that a duplicate appeal (ITA No. 462/Mum/2026) for the same assessment year was already filed online and was complete. The assessee requested to withdraw the physically filed appeal to avoid duplication.
Held
The Tribunal acknowledged the assessee's application for withdrawal of the appeal due to the filing of a duplicate appeal for the same assessment year. With no objection from the Departmental Representative, the Tribunal allowed the application and dismissed the appeal as withdrawn.
Key Issues
Whether the physically filed appeal should be allowed to be withdrawn as a duplicate appeal for the same assessment year was already filed online.
Sections Cited
270A, 274, 80G, 148, 270A(9)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “G” BENCH MUMBAI
Before: SHRI SAKTIJIT DEY, HONBLE & SHRI GIRISH AGRAWAL
IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH MUMBAI BEFORE SHRI SAKTIJIT DEY, HON'BLE VICE PRESIDENT AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No. 718/MUM/2026 Assessment Year: 2018-19 Colour Yellow Productions Pvt Income Tax Officer, Ltd Ward-16(1)(1), B-53, Indus House, Off New Mumbai Link Road, Andheri West, Vs. Mumbai -400053 (PAN: AAFCC4036L) (Appellant) (Respondent) Present for: Assessee : None Revenue : Shri Swapnil Choudhary, Sr. DR Date of Hearing : 27.02.2026 Date of Pronouncement : 05.03.2026 O R D E R PER GIRISH AGRAWAL, ACCOUNTANT MEMBER: 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.
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
2 ITA No.718/Mum/2026 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)..”
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)
3 ITA No.718/Mum/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 ITA No. 718/Mum/2026 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.”
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.
In the result, the appeal of the assessee is dismissed as withdrawn.
Order pronounced in the open court on 05 March, 2026.
Sd/- Sd/- (Saktijit Dey) (Girish Agrawal) Vice President Accountant Member
Dated: 05 March, 2026 MP, Sr.P.S.
4 ITA No.718/Mum/2026 Colour Yellow Productions Pvt. Ltd. AY 2018-19 Copy to : 1 The Appellant 2 The Respondent 3 DR, ITAT, Mumbai 4 Guard File 5 CIT
BY ORDER,
(Dy./Asstt. Registrar) ITAT, Mumbai
