JSW FOUNDATION,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME, CIRCLE EXEMPT 1(1), DELHI, DELHI

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ITA 3284/DEL/2026Status: DisposedITAT Delhi05 August 2026AY 2022-233 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that sustaining a penalty order under Section 270A without first adjudicating the underlying quantum appeal is not legally sustainable. The penalty's basis is intrinsically linked to the quantum of income in dispute.

What were the facts?

The assessee appealed against a penalty order under Section 270A, which was sustained by the First Appellate Authority (FAA) while the quantum appeal was still pending. The assessee argued that the penalty appeal should not have been decided before the quantum issue.

What were the issues?

Whether a penalty under Section 270A can be sustained when the quantum appeal, which forms its basis, is still pending adjudication.

Which sections of the Income-tax Act were involved?

Section 270A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: SHRI ANUBHAV SHARMA & SHRI MANISH AGARWAL

For Respondent: Shri Jadhav Shukracharya
Pronounced: 29.07.2026

PER SHRI ANUBHAV SHARMA, JUDICIAL MEMBER:

This appeal is preferred by the assessee against the order dated 13.03.2026 of the Ld. National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as the First Appellate Authority or ‘the ld. FAA’ for short) in DIN & Order No: ITBA/NFAC/S/250/2025-26/1087343378(1) arising out of the assessment order dated 18.09.2024 u/s 270A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by Assessment Unit, Income Tax Department, for AY: 2022-23.

ITA 3284/DEL/2026 JSW FOUNDATION

2.

On hearing both sides we find that the assesse has challenged the impugned order of ld. First Appellate Authority on the basis that while the quantum appeal is still pending before First Appellate Authority the penalty order u/s 270A have been sustained. On considering nature of penalty, which has its substratum in the quantum under dispute, the dismissal of the appeal of the assesse against penalty proceedings without first adjudicating the quantum issue is not sustainable in law.

3.

The impugned order is set aside. The appeal is allowed for statistical purposes. The issue on merits are restored to the files of ld. CIT(A) to decide afresh after taking into consideration the aforesaid observations of the Bench.

Order pronounced in the open court on 29.07.2026.

Sd/- Sd/- MANISH AGARWAL ANUBHAV SHARMA ACCOUNTANT MEMBER JUDICIAL MEMBER Delhi Dated: 05 .08.2026 Rohit, Sr. PS

ITA 3284/DEL/2026 JSW FOUNDATION

Copy to: JSW FOUNDATION , 5A JINDAL MANSION DR G. DESHMUKH MARG , MUMBAI MUMBAI CUMBALLA 1 HILL S.O 400026 , MAHARASHTRA, MUMBAI-400026, MAHARASHTRA DEPUTY COMMISSIONER OF INCOME, CIRCLE EXEMPT 1(1), DELHI , 2 CIVIC CENTRE, NEW DELHI, NEW DELHI-110002, DELHI 3 THE PCIT / CIT, 4 THE D.R., ITAT, DELHI BENCH 5 GUARD FILE

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