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Facts
The Assessee filed an appeal against a penalty order passed under section 271(1)(c) of the Income Tax Act for Assessment Year 2010-11, which was dismissed by the ld. CIT(A) due to a delay of 335 days. The Assessee highlighted that the CIT(A) had previously condoned a much longer delay of eight years for their appeal against the assessment order for the same year.
Held
The Tribunal observed the contradictory stand taken by the ld. CIT(A) regarding delay condonation. It directed the ld. CIT(A) to condone the 335-day delay in filing the penalty appeal and adjudicate the matter on its merits after providing the assessee a proper opportunity of hearing. The CIT(A)'s order was set aside for de novo adjudication.
Key Issues
Whether the CIT(A) erred in not condoning the 335-day delay in filing the penalty appeal, especially given a prior condonation for the assessment appeal; Whether the penalty order under section 271(1)(c) was valid amidst procedural contentions.
Sections Cited
Income Tax Act, 1961, 250, 271(1)(c), 144, 143(3), 148
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Income Tax Appellate Tribunal, PUNE BENCHES “B” :: PUNE
Before: MS.ASTHA CHANDRA & DR.DIPAK P. RIPOTE
ORDER
PER DR. DIPAK P. RIPOTE, AM:
This is an appeal filed by the Assessee against the order of ld.Commissioner of Income Tax(Appeal)[NFAC], passed under section 250 of the Income Tax Act, 1961 for the A.Y.2010-11 dated 08.09.2025 emanating from the Penalty Order passed under section 271(1)(c) of the Act, dated 20.06.2018. The Assessee has raised the following grounds of appeal :
[A] “1. On the facts and the circumstances of the case and in law, lower authorities erred in not condoning the delay in filling the appeal and rejecting the appeal without making any discussion on merit, this action is being violative of principal of natural justice. Your appellant prays for granting opportunity of hearing before lower authorities.
On the facts and in the circumstances of the case and in-law the Learned CIT(A), erred in rejecting the penalty appeal without condoning delay, especially when same authority has set aside the quantum appeal to the file of Learned AO, by passing order u/s 250 dt. 08/09/2025, In view of this penalty order which is consequential is also liable to be set aside to the file of Ld AO. Without prejudice to the above grounds of appeal
, following grounds are also taken on merit,
3. On the facts and in the circumstances of the case and in law, Ld. AO erred in passing order u/s 271(1)(c) which was in consequence to order passed u/s.144, rws 143(3), as a consequence to notice u/s 148 dated 31/03/2017, it is your appellant contention that he has not received the said notice therefore the entire proceeding is vold ab initio and deserves to be stuck down.
4. On the facts and in the circumstances of the case and in law, Ld. AO erred in serving the order u/s 271(1)(c) dated 20/06/2018 before the prescribed due date therefore the assessment order is not enforceable in the eyes of law and same shall be quashed.
5. On the facts and in the circumstances of the case and in law, Ld. AO erred in passing the order u/s.271(1)(c), without specifying the correct limb, to an extent that penalty is initiated for furnishing of inaccurate particulars, and same is levied for concealment of Income, therefore entire proceedings are vitiated by incorrect charge and therefore penalty order needs to be quashed.” Findings & Analysis :
2. We have heard both the parties and perused the records. In this case, Assessee has filed appeal against the order u/s.271(1)(c) of the Act, for A.Y.2010-11, dated 20.06.2018 before the [A] ld.CIT(A)[NFAC] with a delay of 335 days. Ld.CIT(A)[NFAC] has not condoned the delay and dismissed the appeal of the Assessee.
3. Ld.Authorised Representative(ld.AR) for the Assessee brought to our notice that ld.CIT(A)[NFAC] has condoned the delay in the case of the Assessee with reference to appeal filed against assessment order for A.Y.2010-11.
3.1 Thus, ld.CIT(A) has taken contradictory stand in the case of the Assessee while admitting appeal against assessment order and appeal against penalty order. There has to be a consistency. The ld.CIT(A)[NFAC] has condoned the delay of almost Eight(08) Years while admitting the appeal against assessment order for A.Y.2010-11. In these facts and circumstances of the case, we direct ld.CIT(A) to condone delay of 335 days and decide the appeal of the assessee on merits. Accordingly, we set-aside the order of ld.CIT(A) to ld.CIT(A) for denovo adjudication. Ld.CIT(A) shall provide opportunity of hearing to the assessee. Assessee shall file necessary documents before the ld.CIT(A). Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose.
In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 06 February, 2026.