SUNANDA POLYMERS LLP,EAST PATEL NAGAR, NEW DELHI vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 49(1) , NEW DELHI

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ITA 5077/DEL/2025Status: DisposedITAT Delhi29 June 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 found that the assessee provided a detailed explanation supported by facts, demonstrating a bonafide element. Therefore, the penalty under Section 270A was not attracted.

What were the facts?

The assessee's appeal concerns a penalty imposed under Section 270A for the assessment year 2018-19. The penalty was based on an addition of Rs. 30,55,661/- for alleged bogus sales, leading to a penalty of Rs. 21,15,008/-.

What were the issues?

Whether the penalty under Section 270A is leviable when the assessee provides a bonafide explanation supported by facts for the addition made.

Which sections of the Income-tax Act were involved?

Section 270A

AI-generated summary — verify with the full judgment below

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

Before: SHRI SATBEER SINGH GODARA & SHRI NAVEEN CHANDRA

For Appellant: CA Sh. Ankur Agarwal, CA
For Respondent: Ms. Amisha S Gupt, CIT(DR)
Hearing: 11.05.2026Pronounced: 11.05.2026

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘E’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No.5077/Del/2025 Assessment Year: 2018-19 M/s. Sunanda Polymers Vs. NFAC, LLP, 43/4, 1st Floor, Delhi East Patel Nagar, New Delhi PAN: ACWFS2747N (Appellant) (Respondent) Assessee by Sh. Ashwani Kumar, CA Sh. Ankur Agarwal, CA Department by Ms. Amisha S Gupt, CIT(DR) Date of hearing 11.05.2026 Date of pronouncement 11.05.2026 ORDER PER SATBEER SINGH GODARA, JM This assessee’s appeal for assessment year 2018-19, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2025-26/1077719653(1), dated 24.06.2025 involving proceedings under section 270A of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused.

ITA No.5077/Del/2025

2 It transpires during the course of hearing that the assessee/appellant is aggrieved against both the learned lower authorities’ respective findings in the Assessing Officer’s section 270A penalty order dated 15.09.2023 imposing penalty of Rs.21,15,008/- in its hands as upheld in the lower appellate discussion. That being the case, we notice at the outset that the impugned penalty involves quantum addition/disallowance made in the assessee’s assessment order to 1 % commission coming to Rs.30,55,661/- qua its alleged sales treated as bogus in nature; meaning thereby that the impugned penalty is very much based on estimation. Faced with this situation, we hereby quote section 270A(6) of the Act that the assessee’s explanation herein indeed carries the bonafide element which does not attract the impugned penalty provision since involving the detailed explanation supported by the facts on records. We thus direct the learned assessing authority to delete the impugned penalty in very terms. 3. This assessee’s appeal is allowed. Order pronounced in the open court on 11th May, 2026 Sd/- Sd/- (NAVEEN CHANDRA) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 29th June, 2026. 2 | P a g e

ITA No.5077/Del/2025

RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi

3 | P a g e

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