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

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ITA 1180/KOL/2026Status: DisposedITAT Kolkata24 July 2026AY 2017-20183 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the additions forming the basis for levying the penalties were deleted in the quantum appeal, the very foundation for the penalties ceased to exist. Consequently, the penalties were deleted.

What were the facts?

The assessee's income was assessed at a higher figure than initially declared, leading to penalties under sections 271AAC(1) and 270A. The assessee appealed against these penalty orders after the additions in the quantum appeal were deleted by a co-ordinate bench.

What were the issues?

Whether penalties levied under sections 271AAC(1) and 270A are sustainable when the underlying additions in the quantum appeal have been deleted.

Which sections of the Income-tax Act were involved?

Section 271AAC(1),Section 270A,Section 274

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, KOLKATA

Before: SHRI RAJESH KUMAR, AM & SHRIPRADIP KUMAR CHOUBEY, JM

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

Per Rajesh Kumar, AM:

These are appeals 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 2017-18. The penalties were levied by the ld. AO u/s 271AAC(1) & 270A of the Act vide order dated 27.03.2024, 28.03.2024 for A.Y. 2017-18.

3.

The facts in brief are that the assessee is an individual and is engaged in the business of property development ,trading in medicine, liquor, pathology lab and also having rental income. During the year, the assessee filed the return of income on 28.03.2018, showing income at ₹1,51,05,760/-. The case of the assessee was selected for scrutiny through Computer Assisted Scrutiny Selection (CASS) followed by service of notice u/s 143(2) and 142(1) of the Act and assessment was accordingly framed u/s 143(3) of the Act vide order dated 28.12.2019 assessing the total income at ₹7,40,53,228/-. The AO imposed the above penalties u/s 271AAC and 270A of the Act 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 additions and the basic premise of the ld. AO for levying penalty ceases to exist. Therefore, the penalty appeal may also be allowed as the additions in the quantum appeals were deleted.

5.

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

7.

In the result, the appeals of the assessee are 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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