DCDC HEALTH SERVICES PVT LTD,DELHI vs. DCIT CIRCLE 7(1), DELHI

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ITA 3876/DEL/2026Status: DisposedITAT Delhi29 July 2026AY 2016-172 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that no penalty can survive once the quantum addition is deleted. Consequently, the penalty imposed by the Assessing Officer was deleted.

What were the facts?

The assessee's appeal was against a penalty order under Section 271 of the Income Tax Act for Assessment Year 2016-17. The assessee argued that the penalty should be deleted as the quantum appeal had already been decided in their favor.

What were the issues?

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

Which sections of the Income-tax Act were involved?

Section 271,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES, ‘F’ NEW DELHI

Before: SHRI VIKAS AWASTHY

Pronounced: 27.07.2026

आदेश / ORDER PER AMITABH SHUKLA, AM This appeal filed by the assessee is directed against the separate order of Ld. Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, New Delhi, dated 17.02.2026, arising out of penalty order dated 05.02.2022 passed under section u/s 271 of the Act for the Assessment Year 2016-17. The word ‘Act’ herein this order would mean Income Tax Act, 1961. 2. At the outset, ld. Counsel for the assessee submitted that this tribunal has decided the quantum appeal in favour of the appellant in terms of their order in ITA No.9525/Del/2019 and that therefore the present appeal which is contesting the penalty u/s 271(1)(c) deserves to be allowed in assessee’s favour.

3.

The ld. DR concurred with the arguments of the appellant and did not object to the proposal. 4. We have heard rival submissions in the light of material placed on records. It is trite law that no penalty survives once quantum addition is deleted. Accordingly, we delete the penalty Rs.9,63,720/- u/s 271(1)(c) imposed by the ld. Assessing Officer vide his order dated 05.02.2022. The ground of appeal raised by the assessee is therefore allowed. 5. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 27th July, 2026.

Sd/- Sd/- [VIKAS AWASTHY] [AMITABH SHUKLA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 29.07.2026 Shekhar Copy forwarded to: 1. Appellant 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi,

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