DY. COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-2, JAIPUR, JAIPUR vs. SMT. KAMALA PRABHA L/H OF LATE SH. GOSWAMI GOPAL LAL, KOTA

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ITA 1511/JPR/2025Status: DisposedITAT Jaipur03 September 2026AY 2014-153 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 upheld the CIT(A)'s decision to delete the penalty. It reasoned that if the underlying additions are deleted in the quantum appeal, the penalty proceedings based on those additions are not sustainable. Additionally, the penalty was levied against a deceased person.

What were the facts?

The Assessing Officer initiated penalty proceedings under Section 271(1)(c) against the assessee based on additions made to income. The CIT(A) deleted the penalty, holding that penalty proceedings are not maintainable against a legal heir and that the additions forming the basis of the penalty were also deleted in the quantum appeal.

What were the issues?

Whether penalty under Section 271(1)(c) is maintainable against a legal heir of a deceased assessee, and whether penalty can be sustained if the underlying additions are deleted in the quantum appeal.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JAIPUR “B” BENCH, JAIPUR

Before: SMT. ANNAPURNA GUPTA & SHRI KULDIP SINGH

IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR “B” BENCH, JAIPUR (PHYSICAL HEARING) BEFORE SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER & SHRI KULDIP SINGH, JUDICIAL MEMBER ITA No: 1511/JPR/2025 Assessment Year: 2014-15

Dy. Commissioner of Smt. Kamala Prabha Income Tax, L/H of late Sh. Goswami Vs Central Circle-2, Gopal, Jaipur. Main Road, Ladpura, (Appellant) Kota City, Kota. PAN: AEVPG7177D (Respondent) Assessee Represented: Sh. Devang Gargieya, Adv. Revenue Represented: Sh. Shravan Kumar Meena, CIT Date of hearing : 25-08-2026 Date of pronouncement : 03-09-2026 ORDER PER : KULDIP SINGH, JUDICIAL MEMBER:-

The Appellant, Smt. Kamla Prabha L/h of Late Sh. Goswami Gopal Lal (hereinafter referred to as the ‘assessee’) by filing the present appeal, sought to set aside the impugned order dated 28.08.2025 passed by the Commissioner of Income Tax (Appeal)-4, Jaipur [hereinafter referred to as the ‘CIT(A)’] qua assessment year 2014-15 on the ground that:- “1. Whether on the facts and circumstances of the case and in law, Ld. CIT(A) has erred in deleting the penalty of Rs. 1,01,84,719/- imposed by the A.O. u/s

I.T.A No. 1511/JPR/2025 Page No 2 Smt. Kamala Prabha L/h Late Sh. Goswami Gopal Lal

271(1)(c) of the I.T. Act on the assessee through legal heir on the ground that penalty proceedings are not maintainable against the legal heir of the deceased assessee? 2. The appellant craves leave or reserves right to amend, modify, alter, and or forego any ground(s) of appeal at any time before or during the hearing of this appeal.”

2.

Briefly stated, facts necessary for consideration and adjudication of the issued at hand are: On the basis of assessment order framed u/s 143(3) of the Act at the total income of Rs. 41,42,410/- by making addition of Rs. 8,52,531/- on account of income from the interest and Rs. 25,200/- on account of rental income, penalty proceedings were initiated u/s 271(1)(c) of the Act. Declining the contention raised by the assessee, Assessing Officer proceeded to levy the penalty of Rs. 1,01,84,719/- @ 100% of the tax evaded. 3. Assessee carried the matter before the Ld. CIT(A) by way of filing appeal, who has deleted the penalty levied by the AO by allowing the appeal. Feeling aggrieved with the impugned order passed by the Ld. CIT(A), Revenue has come up before the Tribunal by way of filing the present appeal. 4. We have heard Ld. ARs for the assessee and Ld. DR for the Revenue and perused the record available on file. 5. Bare perusal of the impugned order passed by Ld. CIT(A) go to prove that primarily penalty has been deleted on two grounds: one that penalty has been levied on a dead person and two; that in the quantum appeal addition made against the assessee on the basis of which penalty has been levied has since been deleted vide order dated 30.11.2024 in Appeal No. 4/1097/2013-14. 6. We have perused order dated 21.08.2025 passed by the Tribunal available at page 37 to 120 in the quantum proceedings against the

I.T.A No. 1511/JPR/2025 Page No 3 Smt. Kamala Prabha L/h Late Sh. Goswami Gopal Lal

assessee on the basis of which penalty has been issued. Perusal of the order (supra) passed by the Tribunal go to prove that the Tribunal has confirmed the order passed by Ld. CIT(A) deleting the addition made against the assessee on the basis of which penalty proceedings were initiated. 7. We are inclined to agree with the Ld. CIT(A) that when the quantum appeal on the basis of which penalty has been initiated is not in existence having been deleted, penalty u/s 271(1)(c) of the Act is not sustainable. Moreover it is also proved on record that penalty was levied against a dead person. So we find no illegality or perversity in the impugned order passed by the Ld. CIT(A). 8. Resultantly, the appeal filed by the Revenue is hereby dismissed. Order pronounced in the open court on 03-09-2026.

Sd/- Sd/- (ANNAPURNA GUPTA) (KULDIP SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Jaipur Dated:- 03/09/2026. *Santosh. Copy of the order forwarded to: 1. The Appellant- 2. The Respondent- 3. CIT 4. CIT(A) 5. DR, ITAT, Jaipur. 6. Guard File By order,

Asst. Registrar

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