RAKESH SHUKLA,DELHI vs. ASSESSING OFFICER, DELHI

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ITA 1623/DEL/2026Status: DisposedITAT Delhi18 September 2026AY 2015-164 pages
AI SummaryRemanded

What did the Tribunal hold?

The ITAT noted that the quantum appeal was previously dismissed due to delay, but the ITAT itself later condoned the delay and restored the quantum assessment for denovo adjudication. Therefore, the penalty order was also set aside and remitted to the CIT(A) for fresh adjudication.

What were the facts?

The assessee did not file an ITR for AY 2015-16. The case was re-opened due to large bank entries, and assessment was completed by adding Rs. 14,98,33,014/-. A penalty of Rs. 5,09,28,241/- was imposed under Section 271(1)(c).

What were the issues?

Whether the penalty under Section 271(1)(c) can be confirmed solely because the quantum appeal was dismissed for delay, especially when the quantum appeal was later restored for fresh adjudication.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 147,Section 148,Section 144,Section 69A,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: SHRI SATBEER SINGH GODARA, JUDICIAL & SHRI NAVEEN CHANDRA

आयकर अपीलीय अिधकरण, िद�ी पीठ�, नई िद�ी INCOME TAX APPELLATE TRIBUNAL, DELHI BENCHES, NEW DELHI BENCH: A BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA 1623/DEL/2026 (िनधा�रण वष�/Assessment Year: 2015-16) RAKESH SHUKLA ASSESSING OFFICER H. NO. 10 RAMA PARK, KISHAN NFAC Vs. GANJ, DELHI-110 007 DELHI-110 002 अपीलाथ� Appellant ��थ� Respondent

Permanent Account Number of Assessee: CBYPS4085G

अपीलाथ� �ारा/Appellant represented by: -None- ��थ� �ारा/Respondent represented by: Sh Zafarul Haque Tanweer,CIT DR सुनवाई की तारीख / Date of conclusion of hearing: 06-Aug-2026 घोषणा की तारीख / Date of pronouncement: 18-Sep-2026 आदेश / ORDER PER NAVEEN CHANDRA, ACCOUNTANT MEMBER: This appeal is filed by the Assessee against the order of Ld. CIT(A) dated 30.Dec.2025 arising from the penalty order u/s. 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as the "Act") dated 02.03.2024 passed by the Assessment Unit, Income Tax Department (hereinafter referred to as the "AO") for the A.Y. 2015-16.

2.

None appeared on behalf of the assessee. We accordingly decided to hear the case with the assistance of the ld DR. The ld DR appraised us with facts of the case and materials on record. The Assessee has raised the following grounds of appeal: “1) First ground is that the CIT(A) has erred in confirming the penalty merely on the ground, that the quantum appeal has been dismissed due to delay in filing the appeal. 2) Second ground is that the CIT(A) has further erred in not adjudicating any of the grounds of the assessee. 3) Third ground is that the Any other ground before OR at the time of hearing.”

3.

Brief facts of the case are that the assessee is an individual and not filed his ITR for the A.Y. 2015-16. Subsequently, the case was re-opened u/s. 147 of the Act by issue of notice u/s 148 based on the information with the department that the assessee made debit and credit entries of Rs.8,82,18,426/- in his bank accounts maintained with AXIS Bank and Rs.6,49,94,738/- in the bank account maintained with ICICI Bank during the year under consideration. The assessment was completed u/s. 147 r.w.s. 144 of the Act on 25.05.2023 by assessing the total income at Rs.14,98,33,014/- after making addition u/s. 69A of the Act.

4.

The AO also initiated penalty proceedings u/s. 271(1)(c) of the Act by issue of notice for furnishing of concealment of income. During penalty proceedings, the AO issued notices dated 25.05.2023, 10.08.2023, 18.12.2023 & 26.12.2023 to the assessee. In absence of any response, the AO passed the penalty order u/s. 271(1)(c) by imposing a penalty of Rs.5,09,28,241/- (being 100% of tax sought evaded) on 02.03.2024.

5.

Aggrieved by the penalty order u/s. 271(1)(c) of the Act dated 02.03.2024, the assessee preferred appeal before the ld. CIT(A). The ld. CIT(A) dismissed the appeal of the assessee by observing as under:

“On perusal of the details available on ITBA portal, it is seen that the appellant also filed quantum appeal for this A.Y. 2015-16 vide appeal no. NFAC/2014-15/10318278 dated 21.02.2024. The said appeal was dismissed by the CIT(A)-National Faceless Appeal Centre, Delhi vide order u/s. 250 of the Act in DIN No. ITBA/NFAC/S/250/2025-26/1084218088(1) dated.30.12.2025. As the quantum appeal of the appellant was dismissed by the CIT(A), NFAC-Delhi, the present appeal against the penalty order u/s. 271(1)(c) of the Act stands dismissed.” 6. Aggrieved by the order of the ld. CIT(A), the assessee is now in appeal before us. Before us, ld. DR appraised us that vide separate order dated 03.09.2025 in ITA No.1480/Del/2026 for impugned assessment year 2015-16 wrt quantum assessment, the ITAT has now condoned the aforesaid delay and restored the matter to the file of AO for denovo assessment. On merits therefore the ld. DR relied on the order of the authorities below. 7. We have heard the rival submissions and perused the material available on record. We find that the ld. ITAT in ITA No.1480/Del/2026 has set aside quantum appeal of AY 2015-16 to the file of the CIT(A) for adjudication afresh. We therefore, also set aside the penalty order and remit the matter back to the file of the ld. CIT(A) for fresh adjudication. The CIT(A) is directed to accord three effective opportunities to the assessee and assessee is likewise directed to avail the opportunities and submit documents/evidence as required by the CIT(A). The appeal of the assessee is decided in aforesaid terms. 8. In the result, appeal filed by the Assessee in ITA 1623/Del/2026 is allowed for statistical purposes.

Order pronounced in the open court on 18.09.2026. Sd/- Sd/- SATBEER SINGH GODARA NAVEEN CHANDRA JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 18.09.2026 Priti Yadav, Sr. PS* Copy to: RAKESH SHUKLA, H. NO. 10 RAMA PARK, KISHAN GANJ DELHI, 1 DELHI-110007, DELHI ASSESSING OFFICER, 2 NFAC, DELHI-110002, DELHI 3 THE PCIT / CIT, 4 THE D.R., ITAT, DELHI BENCH 5 GUARD FILE TRUE COPY ASSISTANT REGISTRAR I.T.A.T., DELHI 1. Date of dictation of Tribunal Order 21.08.2026 2. Date on which the typed draft Tribunal Order is placed before the 17.09.2026 Dictating Member. 3. Date on which typed draft order is placed before the other member (in 18.09.2026 the case of DB) 4. Date on which the approved draft Tribunal Order comes to the Sr. P.S. 18.09.2026 /P.S. 5. Date on which the fair Order is placed before the dictating Member for 18.09.2026 sign 6. Date on which the fair order is placed before the other Member for sign 18.09.2026 (in case of DB) 7. Date on which the order comes back to PS/ Sr. PS for uploading on ITAT 18.09.2026 website. 8. Date of uploading, if not, reason for not uploading. 18.09.2026 9. Date on which the file goes to the Bench Clerk 18.09.2026 10. Date on which order goes for Xerox 11. Date on which order goes for endorsement 12. Date on which the file goes to the Superintendent/OS for checking 13. Date on which the file goes to the Assistant Registrar for signature on the order. 14. Date on which the file goes to dispatch section for dispatch the Tribunal order. 15. Date of dispatch of order. 16. Date on which file goes to Record Room after dispatch the order

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