Abhay Dattatray Javlekar Vs ITO (ITAT Mumbai)
The Income Tax Appellate Tribunal (ITAT) Mumbai heard an appeal filed by the assessee, Abhay Dattatray Javlekar, against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 10 February 2025. The appeal concerned a penalty of ₹7,78,315 imposed by the Income Tax Officer under Section 271(1)(c) of the Income-tax Act, 1961 for Assessment Year 2011–12.
The assessee raised multiple grounds challenging the penalty order, contending that the order of the CIT(A), NFAC, was arbitrary, erroneous, and contrary to law. The appellant argued that the order was passed without affording sufficient opportunity of being heard, thereby violating the principles of natural justice. It was further submitted that the assessment order passed under Section 144 read with Section 147 on 18 December 2018, which formed the foundation of the penalty, was itself an ex parte order, and the appeal against it was still pending before the NFAC. Hence, the penalty order was premature.
The assessee also contended that the CIT(A)’s order was non-speaking and mechanical, issued without proper reasoning or consideration of facts. The appellant pointed out that only one notice under Section 250 was issued during the appellate proceedings, showing a lack of adequate opportunity for representation.
After considering the facts, the ITAT observed that the order passed by the CIT(A) was cryptic and lacked reasoning. It noted that the CIT(A) had summarily disposed of the appeal without examining the facts and had adopted a casual approach inconsistent with Sections 250 and 251 of the Act. The Tribunal reproduced a paragraph from the CIT(A)’s order, highlighting its brevity and lack of analysis.
The Tribunal further noted that since the quantum appeal against the assessment order under Section 144 read with Section 147 was still pending before the CIT(A), the imposition of penalty under Section 271(1)(c) was premature. Therefore, the ITAT set aside the penalty order and remitted the matter to the Assessing Officer for de novo consideration after the disposal of the pending quantum appeal.
Accordingly, the appeal filed by the assessee was allowed for statistical purposes. The order was pronounced in the open court on 26 August 2025.
Present for: Assessee – Shri Sachin P. Kumar, Advocate | Revenue – Shri Rajesh Kumar Yadav, CIT (DR)
FULL TEXT OF THE ORDER OF ITAT MUMBAI
