AB REPHCONS INFRASTRUCTURE PVT. LTD.,DELHI vs. ITO, WARD 1(1), NEW DELHI

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ITA 2629/DEL/2026Status: DisposedITAT Delhi02 July 2026AY 2019-202 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 since the assessment order was set aside, the consequent penalty proceedings had no basis. Therefore, the penalty levied under Section 271AAC(1) was deleted.

What were the facts?

The assessee filed an appeal against a penalty order under Section 271AAC(1). However, the assessment order on which the penalty was based had already been set aside by the CIT(A) for fresh consideration.

What were the issues?

The primary issue was the validity of penalty proceedings when the underlying assessment order was set aside. The Tribunal considered whether penalty can sustain independently of a valid assessment.

Which sections of the Income-tax Act were involved?

Section 271AAC(1),Section 250,Section 147,Section 144,Section 144B

AI-generated summary — verify with the full judgment below

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

For Appellant: Shri Ved Jain, Adv. & Ms. Uma, CA Shri Tarun Sharda, Sr. DR
Hearing: 29/06/2026Pronounced: 29/06/2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’: NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.2629/Del/2026 (ASSESSMENT YEAR 2019-20) AB Rephcons Income Tax Officer, Infrastructure Pvt. Ltd. Ward-1(1), (Non-existing entity Vs. New Delhi-11 through ex-Director Mr. Sachin Nagar) PAN-AAGCA4141D (Appellant) (Respondent) Assessee by Shri Ved Jain, Adv. & Ms. Uma Upadhyay, CA Shri Tarun Sharda, Sr. DR Department by Date of Hearing 29/06/2026 Date of Pronouncement 29/06/2026 O R D E R PER MANISH AGARWAL, AM: This appeal is filed by the Assessee against the order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [ld. CIT(A)] dated 15.01.2026 u/s 250 of the Income Tax Act, 1961 (“the Act” in short) arising out of the penalty order passed u/s 271AAC(1) of the Act dated 09.08.2024 for Assessment Year 2019-20.

2.

Heard both the parties and perused the materials available on record. It is observed that the present appeal is filed against the levy of penalty u/s 271AAC(1) of the Act whereas the assessment order passed u/s 147 r.w.s144 read with section 144B of the Act dated 19.02.2024 has already been set aside by the Ld. CIT(A) to

2 ITA No.2629/Del/2026 AB Rephcons Infrastructure Pvt. Ltd. vs. ITO the file of the AO for fresh consideration in terms of the order passed u/s 250 of the Act dated 03.03.2025. As the order in which the present penalty proceedings were initiated has been set aside to the AO for fresh assessment, the consequent penalty proceedings has no legs to stand and, therefore, penalty so levied u/s 271AAC (1) of the Act is hereby deleted. However, the AO is at liberty to re-initiate the penalty proceedings u/s 271AAC(1) of the Act, if the circumstances suggested so in the set aside assessment proceedings. With this appeal of the assessee is allowed.

3.

In the result, the appeal of the Assessee is allowed. Order pronounced in the open Court on 29. 06. 2026.

Sd/- Sd/- (MAHAVIR SINGH) (MANISH AGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 02.07.2026. *PK, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI

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