SPR PUBLICATIONS PRIVATE LIMITED,HYDEDRABAD vs. ITO, WARD-3(1), HYDERABAD

ITA 1776/HYD/2025Status: DisposedITAT Hyderabad03 July 2026AY 2011-127 pages
AI SummaryRemanded

What were the facts?

The assessee's appeal against a penalty order under Section 271(1)(c) was dismissed by the CIT(A) despite the quantum assessment appeal being pending. The CIT(A) held that the outcome of the quantum appeal would not affect the penalty appeal.

What did the Tribunal hold?

The Tribunal held that the penalty is leviable only against additions made in assessment proceedings, thus the quantum appeal's outcome has a direct bearing on the penalty. The CIT(A) should have waited for the quantum appeal's decision before adjudicating the penalty appeal.

What were the issues?

Whether a penalty appeal can be decided before the outcome of the related quantum assessment appeal is known. Whether the CIT(A) erred in upholding the penalty without considering the pending quantum appeal.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 275(1A),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD

Before: SHRI VIJAY PAL RAO & SHRI MADHUSUDAN SAWDIA

Pronounced: 03.07.2026

PER VIJAY PAL RAO, VICE PRESIDENT:

This appeal by the Assessee is directed against the Order dated 22.08.2025 of the learned CIT(A)-National Faceless Appeal Centre [in short "NFAC"], Delhi, arising from the penalty order passed u/sec.271(1)(c) of the Income Tax Act [in short "the Act"], 1961 for the assessment year 2011- 2012. 2. The assessee has raised the following grounds of appeal:

The order passed by th

The order continues below.

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