Sambhav Pipes And Fittings Vs ITO (ITAT Mumbai)
Mumbai ITAT Deletes Penalty U/s 270A as Bombay HC Quashes Reassessment Notice Issued by Jurisdictional AO
The Mumbai ITAT allowed the assessee’s appeal and directed deletion of the penalty of ₹17,14,440 levied under Section 270A of the Income-tax Act for Assessment Year 2019-20. The assessee submitted that the Bombay High Court, in W.P. (L) No. 40898 of 2025 dated 16.12.2025, had set aside the notice issued under Section 148 and all proceedings arising from it on the ground that the notice had been issued by the Jurisdictional Assessing Officer instead of the Faceless Assessing Officer, following the decision in Hexaware Technologies Limited vs. ACIT. The Tribunal observed that, by virtue of the High Court’s order, the reassessment framed under Sections 147 read with 144B pursuant to the Section 148 notice had become null and void. Since the reassessment itself no longer survived, the Tribunal held that the penalty levied under Section 270A based on such reassessment also could not survive. Accordingly, it directed the Assessing Officer to delete the penalty under Section 270A and allowed the appeal.
The Mumbai ITAT deleted the penalty of Rs. 17.14 lakh levied u/s 270A after noting that the very reassessment on which the penalty was founded had been declared invalid by the Bombay High Court. The assessee pointed out that the reassessment notice u/s 148 had been issued by the Jurisdictional AO instead of the Faceless AO, contrary to the statutory scheme. The Bombay High Court, following its earlier decision in Hexaware Technologies Ltd. v. ACIT, had quashed the notice u/s 148 as well as all consequential proceedings arising therefrom.
