Yamaji Ramchandra Rithe Vs Union of India (Bombay High Court)
The Bombay High Court allowed the writ petition challenging the penalty order dated 20.02.2026 passed under Section 271-D and the corresponding notice of demand under Section 156. The petitioner relied on an earlier decision of the Coordinate Bench in Writ Petition (L) No. 42864 of 2025 dated 03.02.2026, contending that the issue was already covered. The Income Tax Department opposed the petition on the ground that an alternate efficacious remedy was available, while the Union of India supported the impugned order.
The Court observed that the earlier Coordinate Bench decision had followed the rulings in B. Shreeram Durgaprasad Vs. Commissioner of Income Tax, Nagpur, Kellogg India Private Limited Vs. National Faceless Assessment Centre, Delhi & Ors., and Maharashtra State Electricity Transmission Company Limited Vs. Assessment Unit, Income Tax Department, National Faceless Assessment Centre & Ors. Finding that the present issue was squarely covered by those decisions, the Court quashed and set aside the penalty order.
The Court directed that the penalty proceedings remain in abeyance until the appeal before the CIT(A) against the assessment order under Section 147 is decided. Continuation of penalty proceedings would depend on the outcome of that appeal.
