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Facts
The assessee, a cooperative society, had its assessment completed under section 143(3) resulting in a significant addition. Subsequently, penalty proceedings under section 270A were initiated, and a penalty was levied. The assessee appealed against this penalty.
Held
The Tribunal held that the levy of penalty is dependent on the quantum addition. Since the quantum addition on which the penalty was based had been deleted by the same Tribunal in a separate appeal, there was no basis for the penalty.
Key Issues
Whether a penalty under section 270A can be sustained when the underlying quantum addition has been deleted.
Sections Cited
143(3), 270A, 250
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Income Tax Appellate Tribunal, PUNE “B” BENCH : PUNE
Before: DR. MANISH BORAD & MS. ASTHA CHANDRA
I.T.A.No.2154/PUN/2025 (Assessment Year 2018-2019) The Satara Zilla Krishi ITO, Ward-2, Satara. Bank Karmachari Sahakari Patsanstha Ltd., vs. Ajinkya Complex, 512, Ch. Shivaji Road, Camp, Sadar Bazar, Satara, Maharashtra PAN : AAAAT 1502 B (Appellant) (Respondent) For Assessee : Ms. Renuka Arunrao Ghatge, CA For Revenue : Shri Aviyogi Ambadkar, Addl.CIT Date of Hearing : 12.01.2026 Date of Pronouncement : 13.01.2026 ORDER PER : MANISH BORAD, AM
This appeal at the instance of the assessee is directed against the order of Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi [“CIT(A)”] dated 15.07.2025 passed under section 250 of the Income Tax Act, 1961 (“Act”) which is arising out of order passed u/s. 270A of the Act, dated 24.01.2022 for the Assessment Year (AY) 2018-19.
2 ITA.No.2154/PUN/2025 (The Satara Zilla Krishi Bank Karmachari Sahakari Patsanstha Ltd.) 2. At the outset, learned counsel for the assessee submitted the impugned penalty u/s. 270A of the Act deserves to be deleted, as the quantum addition has been deleted by this Hon'ble Tribunal vide dated 13.11.2025 for A.Y. 2018-19.
On the other hand, Ld. Departmental Representative (DR) failed to controvert the contentions made by the learned counsel for the assessee.
We have heard rival contentions and perused the records placed before us. We note that the assessee is a cooperative society and assessment u/s. 143(3) of the Act was concluded for A.Y. 2018-19 for assessing income at ₹36,04,316/- as against the returned income of ₹1,72,050/-. Against the addition of ₹36,32,266/-, Ld.AO initiated penalty proceedings u/s. 270A of the Act which was finally concluded on 24.01.2022 levying penalty of ₹ 5,30,287/-. We observe that levy of penalty is dependent on the quantum addition. We note that the addition of ₹ 36,32,266/- made by the Ld.AO has finally been deleted by this Tribunal vide order dated 13.11.2025 in and the assessee’s claim of deduction u/s. 80P(2)(d) has been allowed. Since the very basis of levy of penalty that the addition itself stands deleted by this Tribunal, there remains no legs to stand for the impugned penalty. We therefore set aside the impugned order
3 ITA.No.2154/PUN/2025 (The Satara Zilla Krishi Bank Karmachari Sahakari Patsanstha Ltd.) and delete the alleged penalty levied u/s. 270A of the Act and allow the grounds of appeal raised by the assessee.
5. In the result, appeal of the Assessee is allowed.