RAJESH KATHURIA,DELHI vs. DCIT CIRCLE 13(1), DELHI, DELHI

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ITA 1715/DEL/2026Status: DisposedITAT Delhi15 July 2026AY 2016-20173 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 quantum addition forming the basis of the penalty was deleted by a co-ordinate bench, the penalty cannot survive. Therefore, the appeal of the assessee is allowed.

What were the facts?

The assessee's appeal challenges a penalty order under section 271(1)(c) for AY 2016-17. The penalty was based on an assessment order under section 147 r.w.s. 144B.

What were the issues?

Whether a penalty under section 271(1)(c) can be sustained when the underlying assessment order leading to the addition has been deleted.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 147,Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES, ‘A’ NEW DELHI

Before: SHRI ANUBHAV SHARMA

Pronounced: 15.07.2026

आयकर अपीलीय अिधकरण, िद�ी पीठ�, नई िद�ी INCOME TAX APPELLATE TRIBUNAL, DELHI BENCHES, ‘A’ NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER ITA No.1715/DEL/2026 िनधा�रण वष�/Assessment Year: 2016-2017) RAJESH KATHURIA DCIT CIRCLE 13(1), C-180, ANAND VIHAR, INCOME TAX DEPARTMENT, NEW DELHI-110092 DCIT CIRCLE 13(1), Vs. I.P ESTATE, NEW DELHI-110002I अपीलाथ� Appellant ��थ� Respondent

Permanent Account Number of Assessee: AAJPK9744N

अपीलाथ� �ारा/Appellant represented by: Shri Praveen Kathuria, ADV ��थ� �ारा/Respondent represented by: Shri Balkrishan Gopal, SR DR सुनवाई की तारीख / Date of conclusion of hearing: 02.07.2026 घोषणा की तारीख / Date of pronouncement: 15.07.2026 आदेश / ORDER PER AMITABH SHUKLA, AM This appeal filed by the Assessee is directed against the order of Ld. Commissioner of Income Tax (Appeals)/NFAC, New Delhi, dated 23.01.2026 arising out of penalty order dated 29.03.2025 passed under section u/s 271(1)(c) of the Act for the Assessment Year 2016-17. 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 assessee deserves to be allowed in view of the fact that the quantum addition

ITA 1715/DEL/2026 RAJESH KATHURIA

made by the ld. AO through his order u/s 147 r.w.s. 144B of the Act dated 25.05.2023 stands deleted by a Co-ordinate Bench of this Tribunal in its decision in ITA No.4598/Del/2024 dated 09.04.2026. The ld. Counsel submitted that the ld. CIT(A) has also confirmed the same, vide his order dated 23.01.2026, 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 concealment of income u/s 271(1)(c) is resting upon the assessment order u/s 147 r.w.s. 144B of the Act dated 25.05.2023. The impugned assessment order thus becomes the foundation for the super structure of penalty u/s 271(1)(c) built upon it. It is trite law that when the foundation collapses, the super structure cannot survive. As there is no quantum order available, there cannot be any commensurate penalty order also. Accordingly, we allow the appeal of the assessee.

5.

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

Order pronounced in the open court on 15th July, 2026. - Sd/- Sd/- [ANUBHAV SHARMA] [AMITABH SHUKLA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated:15.07.2026 Shekhar

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ITA 1715/DEL/2026 RAJESH KATHURIA

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