ACIT CIRCLE 3(2)(1), MUMBAI, MUMBAI vs. MAHARASHTRA AIRPORT DEVELOPMENT COMPANY LIMITED, MUMBAI

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ITA 4569/MUM/2026Status: DisposedITAT Mumbai11 September 2026AY 2021-224 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that since the quantum additions were deleted by the Tribunal, the penalty levied under Section 270A, which relied on those additions, could not stand. Therefore, the order of the CIT(A) deleting the penalty was sustained.

What were the facts?

The Revenue appealed against the deletion of penalty levied under Section 270A by the CIT(A). The CIT(A) had deleted the penalty because the quantum additions, which formed the basis for the penalty, were previously deleted by the Tribunal for the same assessment year.

What were the issues?

Whether penalty under Section 270A can be sustained when the underlying quantum additions have been deleted by the Tribunal.

Which sections of the Income-tax Act were involved?

Section 270A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI

Before: SHRI CHALLA NAGENDRA PRASAD & SHRI ARUN KHODPIA

Pronounced: 11/09/2026

PER SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER: This appeal is filed by the Revenue against the order of the learned CIT(A)-NFAC, Delhi, dated 10.02.2026 in deleting the penalty levied u/s. 270A of the Act.

ITA 4569/MUM/2026 MAHARASHTRA AIRPORT DEVELOPMENT COMPANY LIMITED 2. Ld. Counsel for the assessee, at the outset, submitted that the Tribunal in ITA No. 1366/Mum/2024, vide order dated 31.12.2025, for the assessment year 2021-22 allowed the appeal of the assessee by deleting the quantum additions made by the Assessing Officer. It is submitted that the learned CIT(A) taking note of the fact that the Tribunal, vide order dated 31.12.2025 in ITA No. 1366/Mum/2024, deleted the quantum additions for the assessment year under consideration and following the said order, deleted the penalty levied u/s. 270A of the Act.

3.

Heard rival contentions and perused the orders of the authorities below. On careful perusal of the order of the learned CIT(A), it is observed that the penalty levied u/s. 270A of the Act was deleted as the quantum additions were already deleted by the Tribunal vide order dated 31.12.2025 in ITA No. 1366/Mum/2024 for the year under consideration.

4.

Since the quantum additions were deleted by the Tribunal, the very foundation for levy of penalty u/s. 270A of the Act do not survive and, thus, the penalty levied u/s. 270A cannot stand on its own. Thus, we do not see any infirmity in the order of the learned CIT(A) in deleting the penalty. The order of the learned

ITA 4569/MUM/2026 MAHARASHTRA AIRPORT DEVELOPMENT COMPANY LIMITED CIT(A) is sustained and the grounds raised by the Revenue are rejected.

5.

In the result, the appeal of the Revenue is dismissed.

Order pronounced in the open court on 11/09/2026.

Sd/- Sd/- ARUN KHODPIA CHALLA NAGENDRA PRASAD ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai Dated: 11/09/2026 Prabhat

ITA 4569/MUM/2026 MAHARASHTRA AIRPORT DEVELOPMENT COMPANY LIMITED

Copy to: ACIT CIRCLE 3(2)(1), MUMBAI, ROOM NO.608, 6TH FLOOR, AAYAKAR 1 BHAVAN, M.K. ROAD, CHURCHGATE, MUMBAI-400020, MAHARASHTRA

MAHARASHTRA AIRPORT DEVELOPMENT COMPANY LIMITED, 2 8, WORLD TRADE CENTRE, COLABA S.O,, MUMBAI-400005, MAHARASHTRA

3 THE PCIT / CIT, 4 THE D.R., ITAT, MUMBAI BENCH 5 GUARD FILE

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