TaxTMI 
TaxTMI 
2026 (10) TMI 260
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....ted 07.04.2025 passed by learned Commissioner of Income-tax (Appeals)-NFAC, Delhi ["Ld. CIT(A)"], which in turn arises out of the assessment-order dated 23.03.2024 passed by learned Assessment Unit of Income-tax Department ["Ld. AO"] u/s. 143(3) r.w.s. 144B of the Income-tax Act, 1961 ["Act"]. (ii) ITA 651/SRT/2025 is a Penalty-Appeal directed against the order of first appeal dated 07.04.2025 passed by Ld. CIT(A), which in turn arises out of the penalty-order dated 05.09.2024 passed by Ld. AO u/s. 272A(1)(d) of the Act imposing a penalty of Rs. 50,000/- upon assessee. 2. The background facts leading to these appeals are such that the assessee-individual, engaged in the business of diamond, filed his return of AY 2022-23 declari....
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....e of convenience, brevity and clarity. We firstly start with Quantum-Appeal and thereafter take up Penalty-Appeal. ITA No. 650/SRT/2025 - Quantum-Appeal: 4. Ld. AR for assessee submitted that the Ld. CIT(A) passed ex-parte order dismissing assessee's first appeal and merely approving the order of Ld. AO, although due to non-prosecution by assessee on the dates of hearing, but the order passed by Ld. CIT(A) is against the mandate of section 250(6) which provides: "The order of the Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision". It is further submitted that the non-prosecution by assessee was due to bona fide reason as....
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....compliant during the assessment proceedings as well as proceedings of first-appeal, which constrained the lower authorities to pass ex-parte orders. It was, therefore, submitted that while restoring the matter, appropriate directions may be issued to ensure strict compliance by the assessee. 7. In view of above submissions of parties; having regard to the principle of natural justice and also bearing in mind that no prejudice would be caused to revenue if the present matter is restored at the level of Ld. AO, we restore this matter to the file of Ld. AO for adjudication afresh, at the risk and responsibility of assessee. The Ld. AO shall give necessary opportunity of hearing to assessee and pass an appropriate order uninfluenced by his e....
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....ice under sub-section (1) of section 142 or sub-section (2) of section 143 ...... he shall pay, by way of penalty, a sum of ten thousand rupees for each such default or failure." 11. Further, we find that the notices u/s. 142(1) issued by AO, one after another, for examination of similar issues, will not multiply the default and it would constitute a single default. The object of section 272A(1)(d) is to ensure compliance and not to multiply penal consequences for a singular lapse arising out of the same cause. This proposition is supported by plethora of decisions including Devraj Vishwasrao Jadhav Vs. ITO, Satara, ITA No. 1002/Pun/2025 and Ganpat Singh Vs. ITO-3(1), Bhopal, ITA No.158/Ind/2025. 12. Accordingly, in the light....