PRET STUDY BY JANAK FASHIONS PRIVATE LIMITED,DELHI vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 20(1), DELHI, NEW DELHI

PDF · subscribers
ITA 8677/DEL/2025Status: DisposedITAT Delhi27 July 2026AY 2017-183 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 since the assessment was completed under Section 143(3) and not on a best judgment basis, the penalty under Section 272A(1)(d) was not sustainable. The Tribunal deleted the penalty.

What were the facts?

The assessee company filed its return of income and was assessed under Section 143(3). However, the Assessing Officer (AO) initiated penalty proceedings under Section 272A(1)(d) for non-compliance with notices issued under Section 142(1). A penalty of INR 10,000 was levied.

What were the issues?

Whether penalty under Section 272A(1)(d) can be levied for non-compliance with notices when the assessment was completed under Section 143(3) and not under Section 144.

Which sections of the Income-tax Act were involved?

Section 272A(1)(d),Section 142(1),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI “G” BENCHES, NEW DELHI

Before: SHRI YOGESH KUMAR US & SHRI MANISH AGARWAL

For Respondent: Shri Shankar Lal Verma, Sr. DR

PER MANISH AGARWAL, A.M.:

The present appeal is filed by assessee against the order dated 16.10.2025 passed by Ld. Commissioner of Income Tax (A), National Faceless Appeal Centre (“NFAC”), Delhi [“Ld. CIT(A)”] in Appeal No. CIT(A), Delhi-7/10460/2019-20 u/s 250 of the Income Tax Act, 1961 [“the Act”] arising out of penalty order dated 13.11.2019 passed u/s 272A(1)(d) of the Act pertaining to Assessment Year 2017- 18.

2.

Brief facts of the case are that the assessee company has filed its return of income on 27.03.2018, declaring total income of INR 1,64,68,461/-. The

ITA 8677/DEL/2025 PRET STUDY BY JANAK FASHIONS PVT. LTD. assessment was completed u/s 143(3) vide order dated 30.12.2019 however, as the assessee has not made compliance of the notices issued u/s 142(1) dated 12.04.2019 & 17.04.2019, the AO has invoked the penalty proceedings u/s 272A(1)(d) of the Act and after considering the reply, penalty of INR 10,000/- was levied.

3.

Against the said order, assessee filed an appeal before Ld. CIT(A) who vide impugned order dated 16.10.2025, has dismissed the appeal of the assessee by holding that the assessee has not given any reasonable cause for non- compliance of the notices issued u/s 142(1) dated 12.04.2019 & 17.04.2019.

4.

Aggrieved by the order of Ld.CIT(A), assessee is in appeal before the Tribunal by taking various grounds of appeal mentioned in the appeal memo.

5.

Heard the contentions of both the parties at length and perused the material on record. It is observed that in the instant case, the assessee has finally filed the details before AO and after considering them, assessment order was passed u/s 143(3) in terms of the order dated 30.12.2019. Thus, it is ostensible that it is not a case where the assessment was concluded on a best judgment basis under section 144 of the Act. Accordingly, we are of the considered view that the penalty u/s 272A(1)(d) of the Act cannot be imposed.

6.

In support of our aforesaid conclusion, reliance is placed to the on the decision of coordinate Delhi bench of Tribunal in the case of DLF Commercial Enterprises vs. ACIT, reported in (2021) 131 taxmann.com 305 (Delhi-Trib.) and of the Agra bench of Tribunal in the case of Aaryan Motels vs. DCIT reported in (2017) 88 taxmann.com 7 (Agra – Trib.).

7.

Therefore, in the facts and circumstances of the present case, we do not find any merit in the penalty levied under section 272A(1)(d) of the Act vide order 2

ITA 8677/DEL/2025 PRET STUDY BY JANAK FASHIONS PVT. LTD. dated 22.02.2024, and the same is hereby deleted. As a result, all the grounds of appeal raised by the assessee are allowed.

In the result, appeal filed by the assessee is allowed. 8. Order pronounced in the open court on 27.07.2026. Sd/ Sd/- YOGESH KUMAR US MANISH AGARWAL JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 27.07.2026 *Amit Kumar, Sr. P.S*

Copy to: PRET STUDY BY JANAK FASHIONS PRIVATE LIMITED, 1822/B-2, BASEMENT, SHER SINGH 1 BAZAR, NEW DELHI, SOUTH DELHI, 110003, NEW DELHI-110003, DELHI DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 20(1), DELHI, DEPUTY COMMISSIONER OF INCOME 2 TAX, CIRCLE 20(1), C R BUILDING ITO, I P ESTATE, NEW DELHI - 110002, NEW DELHI-110002, DELHI 3 THE PCIT / CIT, 4 THE D.R., ITAT, DELHI BENCH 5 GUARD FILE TRUE COPY

ASSISTANT REGISTRAR / SR. PRIVATE SECRETARY I.T.A.T., DELHI

More judgments on Section 272A(1)(d)

All 1,125 judgments and leading authorities on Section 272A(1)(d) →

Recent GST High Court judgments

Search GST case law →