HARI KRISHNA MISHRA,BASTI vs. THE INCOME TAX OFFICER, , BASTI
Facts
The assessee's return of income was processed under Section 147, resulting in an addition of Rs. 16,32,000/- under Section 69A, and a consequential penalty under Section 271AAC(1). The Commissioner of Income Tax (Appeals) dismissed the assessee's appeal, upholding the penalty.
Held
The Tribunal noted that the quantum appeal concerning the Section 69A addition had been restored to the Assessing Officer for a *de novo* adjudication. As the penalty under Section 271AAC(1) is consequential to the quantum addition, the Tribunal similarly restored the penalty issue to the AO for a *de novo* order.
Key Issues
Whether a penalty imposed under Section 271AAC(1) can be sustained when the underlying quantum addition under Section 69A, which formed the basis for the penalty, has been remitted to the Assessing Officer for fresh adjudication.
Sections Cited
Section 147 of the Income Tax Act, Section 69A of the Income Tax Act, Section 271AAC(1) of the Income Tax Act
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, LUCKNOW BENCH “B”, LUCKNOW
Before: SHRI KUL BHARAT & SHRI ANADEE NATH MISSHRA
I.T.A. No.828/LKW/2025 Assessment Year: 2017-18 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH “B”, LUCKNOW BEFORE SHRI KUL BHARAT, VICE PRESIDENT AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.828/LKW/2025 Assessment year: 2017-18 Hari Krishna Mishra, Vs. The Income Tax Officer, H. No.562, Madava Nagar, Basti New Gandhi Nagar, Basti-272001. Uttar Pradesh-272001. PAN:BDFPM7538A (Appellant) (Respondent) Appellant by Shri Rakesh Garg, Advocate Respondent by Shri R. R. N. Shukla, Addl. CIT-DR O R D E R
(A) This appeal vide I.T.A. No.828/LKW/2025 has been filed by the assessee for assessment year 2017-18 against impugned appellate order dated 30.09.2025 (DIN & Order No.ITBA/NFAC/S/250/2025- 26/1081353520(1) Commissioner of Income Tax (Appeals) [“CIT(A)” for short] which is subject matter of the appeal pertain to levy of penalty u/s 271AAC(1) of the Income Tax Act, 1961 (“Act”, for short). (B) The facts of the case, in brief, are that the assessee is an individual and filed his return of income on 16/02/2021 declaring total income of Rs.2,09,890/-. The assessment was completed under section 147 of the Act determining the total income of the assessee at Rs.12,60,720/- by making addition of Rs.16,32,000/- u/s 69A of the Act. Being aggrieved, the assessee carried the matter in appeal before the learned CIT(A). Vide impugned appellate order dated 30/09/2025, the assessee’s appeal was dismissed by the learned CIT(A). Now the assessee is in appeal before the Income Tax Appellate Tribunal. (C) In this case, the quantum appeal of the assessee was decided vide order dated 05.02.2026 in ITA No. 836/LKW/2025 in the case of Hari
I.T.A. No.828/LKW/2025 Assessment Year: 2017-18 2 Krishna Mishra vs. ITO, whereby the dispute relating to the addition amounting to Rs. 16,32,000/- made u/s 69A of the Act was restored to the file of the Assessing Officer (“AO”) with a direction to pass a de novo order. Since the quantum matter has been restored back for de novo order to the file of the AO, the issue relating to the levy of penalty u/s 271AAC(1) of the Act involved in the present appeal is also restored to the file of the AO, with a direction to pass a de novo order, if any, after passing the consequential order in accordance with the directions contained in the aforesaid order of the Income Tax Appellate Tribunal (ITAT) dated 05.02.2026 in ITA No. 836/LKW/2025 in the case of Hari Krishna Mishra vs. ITO. Needless to say, the AO will pass the order in accordance with law after providing reasonable opportunity of being heard to the assessee. (C) In the result, the appeal of the assessee stands allowed for statistical purposes. (Order pronounced in the open court on 12/02/2026 Sd/- Sd/- [KUL BHARAT] [ANADEE NATH MISSHRA] VICE PRESIDENT ACCOUNTANT MEMBER Dated: 12/02/2026 Vijay Pal Singh (Sr. PS) Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. DR 5. Guard file
