KAMLESHBHAI AMRUTLAL BHATIYA,AHMEDABAD vs. ITO WARD 1(2)(6), SURAT, SURAT

ITA 664/SRT/2026Status: DisposedITAT Surat17 August 2026AY 2008-094 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the penalty is consequential to the quantum proceedings. Since the quantum proceedings have been restored and have not attained finality, the penalty order should be set aside and the matter restored to the AO for fresh adjudication after the quantum proceedings are finalized.

What were the facts?

The assessee's assessment for AY 2008-09 involved additions of Rs. 68,91,300/-. A penalty was levied under Section 271(1)(c) based on these additions. The quantum assessment proceedings have been restored to the AO for fresh adjudication.

What were the issues?

Whether penalty under Section 271(1)(c) can be sustained when the underlying additions are subject to fresh adjudication and have not attained finality.

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, SURAT BENCH, SURAT

For Appellant: Shri Samir Shah, AR
For Respondent: Shri Ashish Kumar, Sr. D.R
Hearing: 24/06/2026Pronounced: 17/08/2026

Per B.M. Biyani, A.M.:

Feeling aggrieved by the order of first-appeal dated 13.02.2026 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“Ld. CIT(A)”], which in turn arises out of the penalty-order dated 24.06.2016 passed by learned ITO-Ward-(1)(3)(7), Surat [“Ld. AO”] u/s 271(1)(c) of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2008-09, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36).

Kamleshbhai Amrutlal Bhatiya ITA No. 664/SRT/2026 - AY 2008-09

2.

The background facts leading to present appeal are as under:

(i) The assessee-individual’s assessme

The order continues below.

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