VIJAY THAKUR,KANGRA, HIMACHAL PRADESH vs. THE INCOME TAX OFFICER, NEW DELHI

ITA 3564/DEL/2026Status: DisposedITAT Delhi13 August 2026AY 2017-20185 pages
AI SummaryAllowed

What were the facts?

The assessee deposited Rs. 12,00,000/- cash during demonetization and did not file an income tax return. The Assessing Officer added this amount as unexplained money and levied a penalty under Section 271AAC(1). The CIT(A) dismissed the assessee's appeal, stating the penalty was sustainable as the quantum appeal was not decided in the assessee's favor.

What did the Tribunal hold?

The Tribunal held that the CIT(A) erred by dismissing the appeal solely based on the quantum appeal's outcome and by not considering the assessee's submissions. The penalty under Section 271AAC(1) was not sustainable as the quantum addition was confirmed on an ad-hoc basis.

What were the issues?

Whether the penalty under Section 271AAC(1) is sustainable when the quantum addition is confirmed on an ad-hoc basis and the CIT(A) failed to consider the assessee's submissions. Whether the CIT(A) can dismiss an appeal summarily without independent adjudication.

Which sections of the Income-tax Act were involved?

Section 271AAC(1),Section 69A,Section 250,Section 142(1),Section 144,Section 274(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘A’, NEW DELHI

For Appellant: Shri Aman Goel, C.A
For Respondent: Shri Balkrishan Gopal, Sr. D.R
Hearing: 13.08.2026Pronounced: 13.08.2026

PER NAVEEN CHANDRA, ACCOUNTANT MEMBER :

This captioned appeal has been filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)- NFAC, Delhi dated 24.12.2025 arising out of the penalty order dated 23.03.2022 passed under section 271AAC(1) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the Assessment Unit (hereinafter referred to as ‘the AO’) for the Assessment Year (A.Y) 2017-18. [A.Y 2017-18]

3.

Assessee has filed following grounds of appeal, which reads

The order continues below.

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