VINOD GUPTA,DELHI vs. ACIT, CENTRAL CIRCLE-18, NEW DELHI

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ITA 2677/DEL/2026Status: DisposedITAT Delhi13 July 2026AY 2018-193 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 the penalty orders were unsustainable as the corresponding quantum assessments had been quashed by a previous order for lack of valid approval under section 153D. The penalty for assessment year 2015-16 was also deleted on merits.

What were the facts?

The assessee's appeals were against penalty orders levied under sections 271(1)(c) and 271AAC(1) of the Income Tax Act. The penalties were based on undisclosed income and expenditure found during a search.

What were the issues?

Whether penalties under sections 271(1)(c) and 271AAC(1) can be sustained when the underlying quantum assessments are quashed due to procedural defects. Whether penalties can be sustained on merits when the quantum assessments are invalid.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 271AAC(1),Section 153D

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI M BALAGANESH

For Respondent: Ms. Lalita Kumari, CIT DR
Hearing: 01.07.2026Pronounced: 13.07.2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’, NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI M BALAGANESH, ACCOUNTANT MEMBER ITA Nos. 2673 to 2679/Del/2026 Assessment Years: 2014-15 to 2020-21 Vinod Gupta, Vs Assistant Commissioner of B-25/26, 2nd Floor, Left side, Income Tax Freedom Fighter Enclave, Central Circle-18, Neb Sarai, Jhandewalan Extn. New Delhi- 110068 New Delhi- 110055 (APPELLANT) (RESPONDENT) PAN No. ABIPG0820D

Assessee by: Sh. Sourav Rohtagi, CA Revenue by : Ms. Lalita Kumari, CIT DR

Date of Hearing: 01.07.2026 Date of Pronouncement: 13.07.2026 ORDER

These assessee's seven appeals ITA Nos. 2673 to 2679/Del/2026; for assessment years 2014-15 to 2020-21, arise against Commissioner of Income Tax (Appeals)-27 (in short, 'CIT(A)'), New Delhi's orders all dated 14.01.2026, passed in case Nos. CIT(A), 10895/2013-14, 10453/2014-15, 10943/2015- 16, 11226/2016-17, 10514/2017-18, 10991/2018-19, 10706/2019-20, passed u/s 271(1)(c) & 271AAC(1) of the Income Tax Act, 1961; hereinafter referred to as, 'the Act', respectively.

Heard both the parties. Case files perused.

2.

It emerges at the outset that both the learned lower authorities' have Invoked their respective penalty proceedings, be it u/s 271(1)(c) or u/s 271AAC of the Act; as the case may be, against the assessee thereby holding him to have derived undisclosed income and expenditure etc., found and deducted during the course of search carried out on 23.12.2019.

3.

Learned counsel at the outset files on record the tribunal's common order in the assessee's corresponding арреals ITA No. 1163 to 1168/Del/2025 (involving all assessment years except 2015-16) quashing the corresponding “quantum” assessments itself for want of a valid approval u/s 153D of the Act. This clinching factual position has gone unrebutted from the Revenue side. Coming to the remaining assessment year, 2015-16 as well, we noticed that the same involves some estimated commission and interest income etc than that based on any actual evidence.

4.

It is in light of all these clinching developments that we hereby conclude that be it on it legality or on merits, the Revenue's stand herein does not deserve to be accepted once the impugned corresponding quantum assessments stand quashed. The impugned penalties have no legs to stand therefore in very

3 terms. The same involving assessment year 2015-16 also stands deleted on merits as well in foregoing terms.

5.

These assessees' seven appeals ITA Nos. 2673 to 2679/Del/2026 are allowed. A copy of this common order be placed in the respective case files.

Order Pronounced in the Open Court on 13.07.2026.

Sd/- Sd/- (M BALAGANESH) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 13.07.2026 *Pooja Mittal, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR

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