ANIL KUMAR PAIK,KOLKATA vs. ACIT, CIRCLE 7(1),, KOLKATA

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ITA 1179/KOL/2026Status: DisposedITAT Kolkata24 July 2026AY 2016-20174 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the additions forming the basis for the penalty were no longer surviving, the penalty could not be sustained. Therefore, the penalty was deleted.

What were the facts?

The assessee's income was assessed at a higher amount than declared, leading to a penalty. The Tribunal had previously deleted some additions, but restored a small portion back to the AO. Subsequently, the Tribunal deleted this remaining addition as well.

What were the issues?

Whether penalty under Section 271(1)(c) can be sustained when the additions forming its basis have been deleted by the Tribunal.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 274

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, KOLKATA

For Appellant: Shri Somnath Ghosh, AR
For Respondent: Shri Sallong Yaden, DR
Hearing: 08.07.2026Pronounced: 24.07.2026

Per Rajesh Kumar, AM:

This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 08.01.2026 for the AY 2016-17. The penalty was levied by the ld. AO u/s 271(1)(c) , vide order dated 28.03.2024 for A.Y. 2016-17.

3.

The facts in brief are that the assessee is an individual and is engaged in the business of property , trading in medicine, liquor, pathology lab and also having rental income. During the year, the assessee filed the return of income on 27.12.2018, showing income at ₹1,62,82,230/-. The case of the assessee was selected for scrutiny and assessment was accordingly framed u/s 143(3) of the Act vide order dated 27.12.2018 assessing the total income at ₹9,17,53,930/-. Thereafter, the matter reached to Tribunal and the Tribunal restored the matter back to the file of the ld. AO only in respect of addition of ₹8,99,780/- and other additions were deleted. The ld. AO accordingly made the addition which were confirmed by the ld. CIT (A) in the appellate proceedings.

4.

The ld. Counsel for the assessee submitted before the Bench that this Tribunal in the quantum appeal deleted the addition in ITA No. 1178/Kol/2026 vide order dated 16.07.2026 and therefore the basic premise of the ld. AO for levying penalty is demolished. Therefore, the penalty appeal may also be quashed as the additions in the quantum appeal were deleted completely.

5.

The ld. DR on the other hand did not oppose the argument of the ld. AR.

7.

In the result, the appeal of the assessee is allowed.

Order pronounced on 24.07.2026.

Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 24.07.2026 Sudip Sarkar, Sr.PS

Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT DR, ITAT, 4. 5. Guard file. BY ORDER, True Copy//

Asst. Registrar Income Tax Appellate Tribunal, Kolkata

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