TECHNOFAB ENGINEERING LIMITED, THROUGH ITS RESOLUTION PROFESSIONAL MR. ATUL MITTAL,NEW DELHI vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 7, DELHI, NEW DELHI

IN THE INCOME TAX APPELLATE TRIBUNAL

DELHI BENCH: ‘E’ NEW DELHI

BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA NOS. 2865 & 2866/DEL/2026 A.YR. : 2021-22 TECHNOFAB ENGINEERING LTD. Vs. DCIT, CC-7, NEW DELHI THROUGH ITS RESOLUTION PROFESSIONAL MR. ATUL MITTAL, 913, HEMKUNT CHAMBERS, 89, NEHRU PLACE, NEW DELHI – 110 019 [PAN: AAACT3829R] (Appellant) (Respondent)

Assessee by Shri Sushil Wadhwa, CA Department by Shri Lal Ram Sanga Sailo CIT(DR_ Date of Hearing 16.7.2026 Date of Pronouncement 16.7.2026

ORDER PER MAHAVIR SINGH, VP : These are quantum as well as penalty appeals filed by the Assessee are directed against the respective orders of the Ld. First Appellate Authority relevant to assessment year 2021-22.

was caused due to the fact that the company is under Bankruptcy proceedings and at the time, it was operating with minimum staff strength under the control of ‘RP’. It was further submitted that the resources of the assessee company were meager and there was no full time management to control the affairs of the assessee company. Thus, it was requested to condone the delay in dispute. Further, it was submitted that the assessment of M/s Technofab Engineering Ltd. for the AY 2021-22 was completed u/s. 143(3) of the Act wherein, certain additions were made due to non- submission of requisite information and penalty proceedings were also initiated and later on penalty u/s. 270A of the Act was levied. It was further submitted that the Ld. CIT(A) confirmed the quantum addition as well as penalty for the same reason i.e. non-prosecution/non-submission of the requisite information. It was further submitted that the assessee company was in poor state of financial and administrative control and requisite data could not be produced by Interim Resolution Professional at the time of assessment proceedings, but now it is submitted that the data and information related to assessment is available with ‘RP’. As the data is voluminous and it require lot of time and effort to peruse, thus, he requested to set aside the assessment and penalty proceedings for verification of voluminous data with the directions to decide the same afresh, after giving adequate opportunity of being heard to the assessee.

in nature and needed more time to peruse, thus keeping in view the aforesaid factual matrix and in the larger interest of justice, the prayer of the Ld. AR for setting aside the assessment and penalty proceedings for verification of voluminous data to the AO is quite reasonable, thus we accept the aforesaid prayer of the assessee. Accordingly, we are setting aside the orders of the lower authorities passed on quantum as well as on penalty with the directions to the Assessing Officer to decide the same afresh, after giving adequate opportunity of being heard to the assessee, keeping in view of the aforesaid facts and circumstances of the case. We hold and direct accordingly.

The above decision was pronounced on 16-7-2026.

Sd/- Sd/- (MANISH AGARWAL) (MAHAVIR SINGH) ACCOUNTANT MEMBER VICE PRESIODENT

“SRBHATNAGGAR” Date: 17-7-2026 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR

Asstt. Registrar, ITAT, New Delhi