MAHAVEER SINGH,AHMEDABAD vs. THE PCIT, AHMEDABAD-1, AHMEDABAD

ITA 840/AHD/2025Status: DisposedITAT Ahmedabad03 March 2026AY 2018-19Bench: DR. BRR Kumar (Vice President), Shri T. R. Senthil Kumar (Judicial Member)13 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the failure to initiate penalty proceedings under Section 270A(2)(b) for not filing the original return of income makes the assessment order erroneous and prejudicial to the interest of revenue. Therefore, the revisionary order passed by the PCIT directing the initiation of penalty proceedings under Section 270A is upheld.

What were the facts?

The assessee failed to file an income tax return for AY 2018-19, despite significant cash deposits and withdrawals. A belated return was filed after reopening proceedings, and the Assessing Officer (AO) initiated penalty proceedings under Section 272A(1)(d) for non-compliance with notices. The Principal Commissioner of Income Tax (PCIT) invoked revisionary powers under Section 263, holding that the AO erred by not invoking Section 270A(2)(b) for failure to file the return.

What were the issues?

Whether the PCIT has the jurisdiction under Section 263 to direct the initiation of penalty proceedings under Section 270A when the AO failed to do so during assessment, and if such failure renders the assessment order erroneous and prejudicial to the revenue.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 148,Section 142(1),Section 139(1),Section 44AD,Section 234F,Section 272A(1)(d),Section 270A,Section 263,Section 271(1)(c)

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Income Tax Appellate Tribunal, AHMEDABAD “A” BENCH

Before: DR. BRR Kumar & Shri T. R. Senthil Kumar

PER: T.R. SENTHIL KUMAR, JUDICIAL MEMBER

This appeal is filed by the Assessee as against Revision order dated 25-03-2025 passed by the Principal Commissioner of Income Tax, Ahmedabad-1, arising out of the assessment order passed under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2018-19. 2. Brief facts of the case is that the assessee is an individual has not filed the Return of Income for the Asst. Year 2018-19. Information received from the insight portal of the Department that the assessee

I.T.A No. 840/Ahd/2025 A.Y. 2018-19 2 made cash deposit of Rs.1,26

The order continues below.

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