DCIT, EXEMPTION CIRLCE, GHAZIABAD, GHAZIABAD vs. M/S KANPUR DEVELOPMENT AUTHORITY, KANPUR

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ITA 6450/DEL/2026Status: DisposedITAT Delhi01 September 2026AY 2015-163 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 substantive addition in the quantum matter was deleted, no penalty under Section 271(1)(c) could be levied. Therefore, the order of the CIT(A) deleting the penalty was upheld.

What were the facts?

The Assessing Officer levied a penalty under Section 271(1)(c) of the Income Tax Act. The assessee had appealed the quantum addition for the same assessment year, and the ITAT had deleted the addition. The CIT(A) subsequently deleted the penalty relying on the ITAT's order.

What were the issues?

Whether a penalty under Section 271(1)(c) can be sustained when the underlying addition has been deleted in the quantum appeal. The issue of awaiting further appeal to the High Court was also raised.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “G” NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI SANJAY AWASTHI

For Appellant: Shri Deepesh Garg, Adv
For Respondent: Ms. Kranti, CIT DR
Hearing: 01.09.2026

ITA No.6450/DEL/2026 M/S KANPUR DEVELOPMENT AUTHORITY IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “G” NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No.6450/DEL/2026 Assessment Year: 2015-16 DCIT (EXEMPTION), Vs. M/S KANPUR DEVELOPMENT Circle, CGO-2, Kamla Nagar, AUTHORITY, Ghaziabad 201002, Uttar Pradesh. Motijheel, Purana Kanpur, S.O. Kanpur, Ghaziabad 208002. Uttar Pradesh. PAN No. AAALK0324M Appellant Respondent Assessee by Shri Deepesh Garg, Adv. Revenue by Ms. Kranti, CIT DR Date of hearing: 01.09.2026 Pronouncement on 01.09.2026 O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER: 1. This appeal arises from order dated 21.04.2026, passed u/s 250 of the Income Tax Act, 1961 (hereafter as “the Act”), by NFAC.

1.1 In this case, the Ld. AO levied a penalty of Rs.19,65,00,000/- u/s 271(1)(c) of the Act, vide order dated 22.03.2025.

2.

Right at the outset, the Ld. AR placed for the perusal of the Bench an order of coordinate bench of ITAT dated 26.03.2025 [ITA No.921/Del/2024] in his own case. This order of ITAT pertains to the quantum matter for AY 2015-16 regarding which the impugned penalty was levied. It was pointed out that the ITAT’s order is dated 26.03.2025,

ITA No.6450/DEL/2026 M/S KANPUR DEVELOPMENT AUTHORITY whereas the order of AO is dated 22.03.2025. Thereafter, the assessee carried this matter before the Ld. CIT(A) who deleted the penalty following the ITAT’s order in the quantum matter.

2.1 The Ld. DR supported the order of AO and stated that this matter has not attained finality, as the Department has challenged it in further appeal, and therefore the matter may be restored back to the file of Ld. AO for awaiting the order of the Hon’ble Allahabad High Court. In this regard ground of appeal no.3 was specifically brought to our notice.

3.

We have heard the submissions of Ld. AR/DR. In this case, the quantum matter has been decided in favour of the assessee and the substantive addition has been deleted. Accordingly, as of now there cannot be any penalty u/s 271(1)(c) of the Act d’hors the quantum. Accordingly, we uphold the order of Ld. CIT(A) through which the impugned penalty has been deleted.

4.

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

Order pronounced in the open court on 01.09.2026

Sd/- Sd/- (SATBEER SINGH GODARA) (SANJAY AWASTHI) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 16.09.2026 *Kavita Arora, Sr. P.S.

ITA No.6450/DEL/2026 M/S KANPUR DEVELOPMENT AUTHORITY

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