SHANTI DEVI JAIN MEMORIAL TRUST,MUZAFFARNAGAR vs. INCOME TAX OFFICER, EXEMPTION WARD, GHAZIABAD

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ITA 3729/DEL/2024Status: DisposedITAT Delhi15 May 2026AY 2013-142 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted that the quantum appeal for the same year was restored to the AO for fresh adjudication. Consequently, the penalty order, which was confirmed by the CIT(A), could not be sustained and was set aside.

What were the facts?

The assessee trust filed an appeal against the order of the CIT(A)/NFAC for AY 2013-14. The assessee did not appear, and the appeal was decided based on the respondent's arguments and available records.

What were the issues?

The primary issue was whether the penalty order could be sustained when the underlying assessment order was restored to the AO for fresh assessment. The Tribunal considered the consequential nature of the penalty.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘G’ NEW DELHI

Before: SHRI YOGESH KUMAR U.S

Hearing: 04.05.2026Pronounced: 15.05.2026

1 ITA No. 3729/Del/2024 Shanti Devi Jain Memorial Trust

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘G’ NEW DELHI BEFORE SHRI YOGESH KUMAR U.S, JUDICIAL MEMBER AND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER ITA No. 3729/Del/2024 ( A.Y 2013-14) Shanti Devi Jain Memorial Trust Vs Income Tax Officer, 204/4, Patel Nagar, Exemption Ward, Income Tax Muzaffarnagar, Uttar Pradesh Office,-IV, CGO Complex, PAN: AAFTS7708C Ghaziabad, Uttar Pradesh (APPLICANT) (RESPONDENT) Appellant by None Respondent by Sh. Shankar Lal Verma, Sr. DR Date of Hearing 04.05.2026 Date of Pronouncement 15.05.2026 ORDER PER YOGESH KUMAR, U.S. JM: The present appeal is filed by the Assessee against the order of

Ld. Commissioner of Income Tax (Appeals/ National Faceless Appeal

Centre (‘Ld. CIT(A)/NFAC’ for short), New Delhi dated 10/06/2024 for

the Assessment Year 2013-14.

2.

None appeared for the Assessee. Considering the issue involved

in the present Appeal, we deem it fit to decide the Appeal on hearing

the Ld. Department's Representative and perusing the material

available on record.

3.

It is found that the Co-ordinate Bench of the Tribunal in

quantum appeal for the year under consideration, in ITA No.

1293/Del/2018 vide order dated 25/02/2026, restored to the issue to

the A.O. for deciding the issues afresh. Considering the above fact that

2 ITA No. 3729/Del/2024 Shanti Devi Jain Memorial Trust

in the quantum appeal, the issue has been restored to the file of the

A.O., the consequential penalty order cannot be sustained.

Accordingly, we set aside the order of penalty which has been

confirmed by the Ld. CIT(A) in the order impugned. However, we

observed that the A.O. is at liberty to initiate fresh penalty proceedings

in accordance with law after framing the de-novo assessment if it is so

required and this order shall come in the way of the A.O. in initiating

fresh penalty proceedings in accordance with law.

4.

In the result, Appeal of the Assessee is partly allowed for

statistical purpose.

Order pronounced in the Open Court on this 15th Day of May, 2026

Sd/- Sd/- (AMITABH SHUKLA) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 15/05/2026 R. Naheed * Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT

ASSISTANT REGISTRAR ITAT NEW DELHI

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