Aadhitya Property Developers Vs Additional/Joint/Deputy/ACIT, ITO (Madras High Court)
Madras High Court has issued an interim order staying penalty proceedings initiated against Aadhitya Property Developers under Sections 270A and 271AAC of the Income Tax Act, 1961. The court’s decision comes in light of a pending appeal filed by the assessee before the Appellate Authority against the underlying assessment order.
The case pertains to the assessment year 2017-18. An assessment order was passed against Aadhitya Property Developers on September 27, 2021, under Section 147 read with Section 144B of the Income Tax Act. Although delayed, reportedly due to the Covid-19 situation, the assessee filed an appeal against this assessment order with the Appellate Authority on February 24, 2022. The appeal, along with a delay condonation petition, is currently awaiting a decision.
Meanwhile, pursuant to the assessment order, the Revenue initiated separate penalty proceedings, concluding them with penalty orders issued under Section 270A on February 24, 2022, and under Section 271AAC on February 21, 2022. Aadhitya Property Developers challenged these penalty orders through writ petitions before the High Court.
Counsel for the petitioner, Mr. N.V. Narayanan, argued that allowing the penalty orders to be executed while the primary assessment appeal is still pending would prejudice the assessee’s interests and effectively render the ongoing appeal proceedings otiose. He sought the court’s intervention to prevent immediate enforcement of the penalty.
