RAMJI VAISH,ALLAHABAD vs. ACIT, ALLAHABAD

ITA 371/ALLD/2018Status: DisposedITAT Allahabad09 June 2026AY 2011-125 pages
AI SummaryAllowed

What were the facts?

The assessee appealed against a penalty order under Section 221(1) for AY 2011-12. There was a difference of opinion between the original members, leading to a Third Member reference.

What did the Tribunal hold?

The Tribunal, based on the majority view of the Judicial Member and the Third Member, held that the penalty under Section 221(1) was not justified. The Assessing Officer had not properly considered the assessee's financial condition or formulated his opinion under Section 220(6) before levying the penalty.

What were the issues?

Whether penalty under Section 221(1) is leviable when the assessee is in appeal and has financial constraints, and if the AO properly considered Section 220(6) before deeming the assessee in default.

Which sections of the Income-tax Act were involved?

Section 221(1),Section 220(1),Section 220(6),Section 250,Section 255(4)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ALLAHABAD BENCH, ALLAHABAD

Before: SHRI. SUDHANSHU SRIVASTAVA & SHRI NIKHIL CHOUDHARY

Hearing: 11.03.2026Pronounced: 09.06.2026

PER NIKHIL CHOUDHARY, A.M.:

This appeal by the assessee is directed against the order dated 20.09.2018 of the ld. CIT(A), passed under section 250 of the Income Tax Act, 1961, which in turn arose from the penalty order passed under section 221(1) of the Income Tax Act for the assessment year 2011-12. 2. Since there was difference of opinion between the Hon’ble Judicial Member and Hon’ble Accountant Member, who originally heard the appeals, the question of difference was framed by the Hon’ble Members and the Hon’ble President nominated the then Hon’ble Vice President, Kolkata Zone as the T

The order continues below.

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