BABA ALLOYS PRIVATE LIMITED,NEW DELHI vs. ITO WARD 4(1), DELHI, NEW DELHI

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ITA 7365/DEL/2025Status: DisposedITAT Delhi05 June 2026AY 2012-133 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 penalty proceedings were embedded in the quashed assessment order, the penalty proceedings also deserve to be quashed.

What were the facts?

The assessee's appeal arises from a penalty order under Section 271(1)(c) for AY 2012-13. The assessment order was previously quashed by a coordinate bench.

What were the issues?

Whether penalty proceedings can sustain when the underlying assessment order has been quashed due to non-disposal of objections.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, DELHI

Before: SHRI S RIFAUR RAHMAN & SHRI ANUBHAV SHARMA

For Appellant: Ms. Neha Gupta, Adv
Hearing: 26.05.2026Pronounced: 05.06.2026

PER ANUBHAV SHARMA, JM:

This appeal is preferred by the Assessee against the order dated 27.10.2025 of the Ld. National Faceless Appeal Centre (NFAC) Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in DIN & Order No: ITBA/NFAC/S/250/2025-26/1082007610(1) arising out of the order dated 16.03.2022 u/s 271(1)(C) of the Income Tax Act, 1961

P a g e | 2 ITA No. 7365/Del/2025 Baba Alloys Pvt. Ltd. (AY: 2012-13) (hereinafter referred to as ‘the Act’) passed by the ITO, Ward 4(1) for AY: 2012-13.

2.

On hearing both sides we find that vide ITA No. 5118/Del/2019 and 5119/Del/2019 for AY: 2012-13 and 2013-14 order dated 25.11.2024 Coordinate Bench had quashed the assessment order for the reason that objections filed by the assesse u/s 148 of the Act were not disposed off and not communicated to the assesse.

3.

The present penalty proceedings are embedded in the aforesaid quantum order and thus deserves to be quashed too. The appeal is allowed and penalty is quashed.

Order pronounced in the open court on 05.06.2026

Sd/- Sd/- (S Rifaur Rahman) (Anubhav Sharma) ACCOUNTANT MEMBER JUDICIAL MEMBER

Dated 05.06.2026 Rohit, Sr. PS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT

P a g e | 3 ITA No. 7365/Del/2025 Baba Alloys Pvt. Ltd. (AY: 2012-13)

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ITAT NEW DELHI

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