ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 19(1), DELHI vs. P. C. GLOBAL MERCHANDISING PVT LTD , DELHI

आयकर अपीलीय अिधकरण, िद�ी पीठ�, नई िद�ी INCOME TAX APPELLATE TRIBUNAL, DELHI BENCHES, ‘G’ NEW DELHI BEFORE MS. KAVITHA RAJAGOPAL, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER ITA No.2988/DEL/2026 िनधा�रण वष�/Assessment Year: 2020-21) ASSISTANT COMMISSIONER OF P. C. GLOBAL INCOME TAX, CIRCLE 19(1) MERCHANDISING PVT LTD ROOM NO. 221, 2ND FLOOR, C. R. B - 24, PANCHSHEEL ENCLAVE Vs. BUILDING, NEW DELHI-110002 NEW DELHI 110017 अपीलाथ� Appellant ��थ� Respondent Permanent Account Number of Assessee: AACCP9641D

अपीलाथ� �ारा/Appellant represented by: Shri Raghuveer Singh, Sr. DR ��थ� �ारा/Respondent represented by: Sh. Somil Agarwal, Adv. & Sh. Deepesh Garg, Adv. सुनवाई की तारीख / Date of conclusion of hearing: 08.07.2026 घोषणा की तारीख / Date of pronouncement: 17.07.2026 आदेश / ORDER PER AMITABH SHUKLA, AM This appeal filed by the Revenue is directed against the order of Ld. Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, New Delhi, dated 02.01.2026 arising out of penalty order dated 13.03.2025 passed u/s 270A of the Act, for Assessment Year 2020-21. The word ‘Act’ herein this order would mean Income Tax Act, 1961. 2. At the outset, the ld. Counsel for the assessee submitted that the appeal of the Revenue deserves to be dismissed in view of the fact that the quantum addition made by the ld. AO through his order u/s 143(3) of the Act dated 27.09.2022 read 1

ITA 2988/DEL/2026 P. C. GLOBAL MERCHANDISING PVT LTD

with section 154 dated 04.05.2023 stands deleted by a Co-ordinate Bench of this Tribunal in its decision in ITA No.3072/Del/2025 dated 25.02.2026. The ld. Counsel submitted that this without prejudice that the ld. CIT(A) has allowed its appeal vide his order dated 02.01.2026, wherein, the assessee had contested invocation of penalty u/s 270A in its case. 3. The ld. DR places reliance upon the order of the ld. Assessing Officer. 4. We have heard rival submissions in the light of material placed on record. We have noted that in this case, the penalty for under reporting of income u/s 270A is resting upon the assessment order u/s 143(3) of the Act dated 27.09.2022 read with section 154 dated 04.05.2023. The impugned assessment order thus becomes the foundation for the super structure of penalty u/s 270A built upon it. It is trite law that when the foundation collapses, the super structure cannot survive. Accordingly, we dismiss the appeal of the Revenue. 5. In the result, the appeal of the Revenue is dismissed. Order pronounced in the open court on 17th July, 2026.

Sd/- Sd/- [KAVITHA RAJAGOPAL] [AMITABH SHUKLA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 17.07.2026 Shekhar Copy forwarded to: 1. Appellant 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi, Page 2 of 2