KULDIP SINGH,CHANDIGARH vs. ITO, WARD-5(5), CHANDIGARH, CHANDIGARH

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ITA 271/CHANDI/2026Status: DisposedITAT Chandigarh12 August 2026AY 2012-132 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that since the quantum appeal was remanded back, the consequential penalty should also be restored back for fresh adjudication. This was to be done in light of the outcome of the quantum appeal.

What were the facts?

The assessee filed an appeal against a penalty order under section 271(1)(c). The penalty stemmed from a quantum addition that had already been restored back to the Assessing Officer (AO) by the Tribunal.

What were the issues?

Whether a penalty imposed under section 271(1)(c) should be set aside or remanded when the underlying quantum addition has been remanded back to the Assessing Officer.

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, “A” BENCH, CHANDIGARH

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

आदेश / O R D E R RAJESH DAMODARLAL SHARMA (Judicial Member)

1.

The present appeal has been filed by assessee against the order passed u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) dated 20.01.2026 by the Commissioner of Income Tax (Appeals), NFAC [CIT(A)] confirming penalty of Rs.23,74,110/- u/s 271(1)(c). 2. It is an admitted position during hearing that the quantum addition, from which impugned penalty emanates, has already been

restored back by Tribunal to Ld. AO vide ITA No. 789/Chd/2025, order dated 27.10.2023. Since, quantum appeal has already been remanded back, the consequential penalty is also to be restored back on similar line for fresh adjudication in the light of the outcome of the quantum appeal. We order so. 3. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced on 12th August, 2026

-Sd- -Sd- (MANOJ KUMAR AGGARWAL) (RAJESH DAMODARLAL SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER AS Dated: 12-08-2026 आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF

BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KENDRIYA SADAN, SECTOR – 9A CHANDIGARH

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