Mithapur Nutan Bal Shikshan Sangh. Vs ITO (ITAT Rajkot)
These four appeals relate to penalties u/s 270A & 271AAC(1). CIT(A)-NFAC had dismissed all penalty appeals as time-barred, refusing condonation of delay of about 503 days, & therefore did not examine merits. Assessee explained detailed reasons for delay through affidavits, including trust-run school activities, administrative constraints & circumstances beyond control. Tribunal found that CIT(A) himself had condoned delay in the quantum appeal for AY 2019-20, & had even set aside the quantum assessment directing AO to frame a fresh assessment after full opportunity. Tribunal held that once CIT(A) recognized “sufficient cause” in quantum proceedings, there was no justification for refusing condonation in connected penalty matters. Tribunal also accepted that reasons narrated in condonation petitions constituted sufficient cause.
Tribunal therefore condoned delay in all four penalty appeals. Since quantum for AY 2019-20 already stood restored to AO, the penalties for that year automatically became infructuous. Tribunal restored all penalty appeals (AYs 2018-19 & 2019-20) to AO, with liberty to initiate fresh penalty, if warranted, during de-novo assessment in accordance with law. Appeals allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT RAJKOT
This is the bunch of four appeals, filed by the same assessee, pertaining to assessment years 2018-19 and 2019-20, are directed against the separate orders passed by the CIT(A), which in turn arise out of separate penalty orders by the assessing officer u/s. 271AAC(1), and under section 270A of the Income Tax Act, 1961.
