Sarika Dadaso Zende Vs ITO (ITAT Pune)
The Income Tax Appellate Tribunal (ITAT) Pune addressed an appeal filed by Sarika Dadaso Zende against the order of the Commissioner of Income Tax (Appeals) [CIT(A)], which had confirmed a penalty of 15,48,108 levied by the Assessing Officer under Section 270A of the Income Tax Act, 1961. The penalty was imposed for under-reporting of income, stemming from the assesses claim of deductions for statutory dues paid in the financial year 2019-2020. These dues, previously disallowed under Section 43B due to delayed payment, were re-claimed in a revised income return. The Assessing Officer rejected this claim, leading to the penalty.
During the ITAT proceedings, it was revealed that the quantum appeal, concerning the underlying income assessment, had been restored to the CIT(A) for fresh adjudication. The assessee counsel argued that the penalty matter should also be remanded to the CIT(A) for reconsideration, given the pending quantum appeal. The ITAT, acknowledging the pending quantum proceedings, agreed to this request. Consequently, the ITAT remanded the penalty issue to the CIT(A) for fresh adjudication, effectively deferring a decision on the penalty until the quantum appeal is resolved. This decision was based upon the logical concept that the penalty should be calculated, and argued, based upon the final assessed income. The ITAT allowed the assesses appeal for statistical purposes, indicating that the matter would be revisited after the CIT(A) re-examines the quantum assessment.
