Madhavi Beeravolu Vs ITO (ITAT Hyderabad)
Penalty u/s 271AAC & 270A Restored – ITAT Sends Back Penalty Appeals as Quantum Itself Remanded
Assessee did not file return for AY 2018-19. AO reopened the case u/s 147 based on sale of immovable property & cash deposits. Assessment was completed ex-parte u/s 147 r.w.s 144/144B, determining income at ₹1,00,91,053/-. Penalties were separately levied: (i) ₹93,941/- u/s 271AAC(1) on addition u/s 69A for cash deposits, & (ii) ₹2,15,052/- u/s 270A for under-reported income. CIT(A) dismissed quantum appeal due to delay & also upheld penalties.
Tribunal noted that in a connected appeal ITA No.1154/Hyd/2025 (order dated 29.10.2025), the quantum assessment was already restored to CIT(A) because the ex-parte order & the delayed appeal were both dealt with improperly. Once quantum itself stood remanded for fresh adjudication, penalties linked to the same additions could not survive independently.
Tribunal held that penalties u/s 271AAC(1) & 270A must also be restored to CIT(A) to be decided afresh only after the quantum issues are re-adjudicated. Accordingly, both penalty appeals were allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
The captioned appeals filed by the assessee are directed against the orders passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, dated 11/07/2025, which in turn arise from the order passed by the AO under section 271AAC(1) of the Income-tax Act, 1961 (for short, “Act”) dated 08/08/2024 and under section 270A of the Act, dated 05/09/2024 for the Assessment Year 2018-19. As common issue is involved in the captioned appeals, therefore, the same are being taken up and disposed of vide a consolidated order.
