PRASHANT SONI,DELHI vs. CENTRAL CIRCLE 7, DELHI, DELHI

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ITA 3895/DEL/2026Status: HeardITAT Delhi07 August 2026AY 2015-162 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that the quantum addition for the assessment year had been deleted in a previous appeal. Consequently, the basis for the penalty was removed.

What were the facts?

The assessee's appeal was against a penalty levied under Section 271(1)(c) of the Income Tax Act for AY 2015-16. The penalty was upheld by the CIT(A).

What were the issues?

Whether penalty under Section 271(1)(c) can survive when the underlying addition has been deleted.

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, DELHI

Before: SHRI VIKAS AWASTHY&

For Respondent: Ms. Ranu Mukherjee, CIT(DR)

PER SHRI VIKAS AWASTHY, JUDICIAL MEMBER: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-24, New Delhi [in short ‘the CIT(A)’] dated 13.02.2026, for AY 2015-16 upholding penalty levied u/s.271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

2.

At the outset, we observe that quantum addition for the impugned assessment year has been deleted by the Tribunal in assessee’s appeal ITA No.2612/Del/202 decided on 30.12.2025. Once, the substratum for levy of penalty has eroded, the penalty proceedings would not survive.

ITA 3895/DEL/2026 PRASHANT SONI

3.

In the result, impugned order is set aside and appeal of the assessee is allowed.

Order pronounced in the open court on Wednesday the 05th day of August, 2026.

Sd/- Sd/- AMITABH SHUKLA VIKAS AWASTHY ACCOUNTANT MEMBER JUDICIAL MEMBER Delhi Dated 07-August-2026

NV/-

Copy to: PRASHANT SONI, M-50, FIRST FLOOR, GURU HARKISHAN 1 NAGAR, PASCHIM VIHAR,, NEW DELHI-110087 CENTRAL CIRCLE 7, DELHI, 256, E - 2, ARA CENTRE, JHANDEWALAN 2 EXTENSION,, NEW DELHI-110055 3 THE PCIT / CIT, 4 THE D.R., ITAT, DELHI BENCH 5 GUARD FILE

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