RAMA THAKUR,KULLU, HIMACHAL PRADESH vs. INCOME TAX OFFICER, WARD-KULLU, HIMACHAL PRADESH, KULLU, HIMACHAL PRADESH

ITA 240/CHANDI/2026Status: DisposedITAT Chandigarh20 August 2026AY 2015-162 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the quantum addition on which the penalty was levied has been deleted, the penalty itself does not survive. Therefore, the penalty is not sustainable.

What were the facts?

The assessee appealed against a penalty levied under Section 271(1)(c) of the Income Tax Act, 1961. This penalty was based on a quantum assessment of capital gains. However, the underlying quantum addition was later deleted by the Tribunal.

What were the issues?

Whether a penalty under Section 271(1)(c) can be sustained when the underlying quantum addition has been deleted by a higher appellate authority.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI RAJESH DAMODARLAL SHARMA, JM

RAJESH DAMODARLAL SHARMA (Judicial Member)

1.

Aforesaid appeal by assessee for Assessment Year (AY) 2015-16 arises out of an order dated 29.03.2019 passed by Ld. Commissioner of Income Tax (Appeals), NFAC [CIT(A)] confirming penalty u/s 271(1)(c) as levied by Ld. AO. The penalty has been levied against quantum assessment of capital gains for Rs.65.20 Lacs.

2.

It transpires that underlying quantum addition, on which penalty has been l

The order continues below.

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