Jaihind Welding and Boiler Work Vs ITO (ITAT, Pune Bench)
Penalty Cannot Run Ahead of Quantum Appeal: Pune ITAT Restores Section 271(1)(c) Disputes for Decision After Additions Attain Finality
Summary: The assessee, M/s Jaihind Welding & Boiler Work, was a partnership firm. It filed two appeals challenging separate orders of the NFAC/CIT(A), both dated 30 January 2026, confirming penalties levied u/s 271(1)(c) for AYs 2009-10 & 2011-12.
Both appeals before the Tribunal were delayed by 30 days. The assessee filed separate applications for condonation supported by affidavits explaining the delay. After considering the applications & hearing the Revenue, the Tribunal condoned the delay & admitted both appeals for adjudication.
For AY 2009-10, the assessee filed its return on 30 September 2009 declaring total income of ₹7,50,110. The assessment was subsequently completed u/s 143(3) r.w.s. 147 after making an addition of ₹87,259, with total income stated to have been determined at ₹10,97,800.
Based on the reassessment addition, the AO initiated penalty proceedings u/s 271(1)(c) for furnishing inaccurate particulars of income. By an order dated 21 March 2024, the AO levied penalty of ₹78,365. The CIT(A) confirmed the penalty.
For AY 2011-12, penalty was similarly levied u/s 271(1)(c) & confirmed by the CIT(A). The order records that the material facts were identical to those concerning AY 2009-10, though the amount of addition & penalty for AY 2011-12 was not separately reproduced.
