TRIPTI BAGLA,KOLKATA vs. ITO, WARD 33(2),, KOLKATA

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ITA 945/KOL/2026Status: DisposedITAT Kolkata25 June 2026AY 2017-20183 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the penalty order had no basis as the underlying quantum appeal was set aside. Therefore, the penalty was deleted, with liberty to the AO to re-initiate proceedings if necessary.

What were the facts?

The assessee's appeal was against a penalty order confirmed by the CIT(A). The CIT(A) had previously restored the quantum appeal to the AO for fresh adjudication.

What were the issues?

Whether a penalty order can survive when the quantum appeal on which it is based has been set aside for denovo adjudication.

Which sections of the Income-tax Act were involved?

Section 271AAC(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, KOLKATA

For Appellant: Shri Ankit Jalan, AR
For Respondent: Shri Dheeraj, DR
Hearing: 16.06.2026Pronounced: 25.06.2026

Per Rajesh Kumar, AM:

This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 14.01.2026 for the AY 2017-18.

2.

At the outset, the ld. Counsel for the assessee submitted that the appeal of the assessee is against the order of ld. CIT (A) confirming the penalty imposed by the ld. AO u/s 271AAC(1) of the Income-tax Act, 1961 (the Act). The ld. Counsel for the assessee submitted that since the quantum appeal has been restored by the ld. CIT (A) to the file of the ld. AO for denovo adjudication of the issues. Therefore, this penalty order has

3.

The ld. DR on the other hand fairly agreed on the issue.

4.

After hearing the rival contentions and perusing the materials available on record, we find that the penalty imposed as confirmed by the ld. CIT (A) has no legs to stand as quantum appeal has been restored by the ld. CIT (A) to the file of the ld. AO for denovo adjudication. Consequently, we delete the penalty as it has no legs to stand with a liberty to the ld. AO to re-initiate the penalty proceedings in the set aside proceedings in accordance with law.

5.

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

Order pronounced on 25.06.2026.

Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 25.06.2026 Sudip Sarkar, Sr.PS

Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT DR, ITAT, 4. 5. Guard file. BY ORDER, True Copy//

Asst. Registrar Income Tax Appellate Tribunal, Kolkata

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