DEPUTY COMMISSIONER OF INCOME TAX, HALDWANI vs. SURENDER KUMAR CHAWLA, RUDRAPUR

IN THE INCOME TAX APPELLATE TRIBUNAL DB: DEHRADUN BENCH BEFORE SHRI RAJ KUMAR CHAUHAN, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No.- 328/DDN/2026 [Assessment Year: 2014-15] Deputy Commissioner of Income Surender Kumar Chawla, Tax, 2nd floor, Aaykar Parisar, C-27, Chawla Niwas, Kashipur Chorgalia By pass, Golapaar, Vs Road, Rudrapur Alliance Kingston Haldwani cum Kathgodam. Estate, Uttarakhand-263153. PAN-ACAPC8966H Revenue Assessee Assessee by Shri S.K. Matta, CA Revenue by Shri S.K. Chaterjee, CIT (DR) Date of Hearing 23.07.2026 Date of Pronouncement 21.08.2026 ORDER Per Sanjay Awasthi, Accountant Member:

“In this regard, the undersigned would like to state that, in the case of Shri Surender Kumar Chawla, an appeal under section 253 of the Income-tax Act, 1961 is proposed to be filed before the Hon'ble Income Tax Appellate Tribunal against the order dated 19.03.2026 passed by the Commissioner of Income Tax (Appeals)-3, Lucknow

ITA No.- 328/DDN/2026 Surender Kumar Chawala 3. The appeal could not be filed within the prescribed limitation period and there has been a delay of 16 days. The reasons for the delay are summarized below: a) During the relevant period, the undersigned was faced with unavoidable personal circumstances arising out of the serious medical condition of a close family member, requiring continuous attention and frequent medical consultations. b) Further during the last quarter of 2025 & first quarter of 2026, several orders of CIT(A) and ITAT were received in this office and Moradabad office (Additional Charge) in which CSR had to be prepared and Give effect orders were to be passed including dropping/imposing penalty orders due to which the process of examination of the appellate order, preparation of grounds of appeal and obtaining necessary approvals could not be completed within the stipulated period.

c) The delay is neither deliberate nor attributable to any mala fide intention. 4 In view of the above facts and circumstances, it is kindly requested to allow condonation of delay for filing appeal before the Hon'ble ITAT in this matter.” 1.1 Considering the reasons given in the said petition, the delay is hereby condoned and the appeal is admitted for adjudication.

2.1 In this case, the AO is seen to have levied a penalty of Rs. 51381499/- u/s 271(1)(c) of the Act.

2.2 Aggrieved, the assessee approached ld. CIT(A), where he could succeed in getting the penalty deleted.

2.3 Aggrieved with this action of the Ld. CIT(A), the Revenue has approached ITAT with the following grounds of appeal:

ITA No.- 328/DDN/2026 Surender Kumar Chawala “2 Under section 253(2) of the Income Tax Act. 1961. 1, therefore direct Deputy Commissioner of Income Tax, Central Circle, Haldwani to file an appeal before the Income Tax Appellate Tribunal against the order of the above authority with the following grounds of appeal: - "(1) Whether, on the facts and in the circumstances of the case, the penalty proceedings under section 271(1)(c) of the Income-tax Act, 1961 survive for consideration where the quantum additions, thought deleted by the Hon'ble ITAT are subsequently challenged by the Revenue before the Hon'ble High Court (ii) Whether the deletion of quantum addition by the Hon'ble ITAT can be regarded as having attained finality for the purposes of penalty proceedings under section 271(1)(c) when the Revenue has preferred a further statutory appeal before the Hon'ble High Court (iii) Whether the fate of penalty proceedings under section 271(1)(c) is dependent upon the final outcome of the quantum proceedings and, therefore requires reconsideration in the event of reversal or modification of the quantum order by the Hon'ble High Court. (iv) The appellant craves leave to add or amend any one or more of the grounds of appeal as stated above, as and when needed with the prior permission of Hon’ble Court.

2.4 Before us, the Ld. DR stated that the quantum matter in the assessee’s own case has been decided by the ITAT in his favour, vide order dated 20.11.2025, in ITA No. 63/DDN/2024 for A.Y. 2014-15 in the case of Surender Kumar Chawla vs. ACIT. It was pointed out by the Ld. DR that this order of ITAT has not been accepted by the Revenue and an appeal has been filed in the concerned High Court. It was argued that the penalty should be allowed to stand on its own merit and should not be bound by the quantum order.

3.1 The Ld. AR, on the other hand, merely relied on the decision of ITAT in the quantum matter in the case of Surender Kumar Chawla vs. ACIT (supra) and stated that once the root of the matter had been disposed of then no other limb could 3

ITA No.- 328/DDN/2026 Surender Kumar Chawala survive. It was stated that once the quantum has been deleted then there can be no penalty u/s 271(1)(c) of the Act.

Order pronounced in the open court on 21.08.2026.

Sd/- Sd/-

[RAJ KUMAR CHAUHAN] [SANJAY AWASTHI] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated- 21.08.2026. Pooja. Copy forwarded to: 1. Assessee 2. Respondent 3. CIT 4

ITA No.- 328/DDN/2026 Surender Kumar Chawala 4. CIT(A) 5. DR

Asst. Registrar, ITAT, New Delhi,

1 Date of dictation of Tribunal order 19.08.26 2. Date on which typed draft order is placed before the 19.08.26 dictating Member 3 Date on which typed draft order is placed before the other Member (in the case of DB) 4. Date on which the approved draft order comes to P.S/Sr.P.S 5. Date on which the fair Order is placed before the dictating Member for sign 6. Date on which the fair Order is placed before the other Member for sign ( in the case of DB) 7. Date on which the Order comes back to P.S./Sr.P.S for uploading on ITAT website 8. Date of uploading, if not, reason for not uploading 9. Date on which the file goes to the Bench Clerk 10. Date on which order goes for xerox 11. Date on which order goes for endorsement 12. Date on which the file goes to the Superintendent/O.S. for checking 13. Date on which the file goes to the Assistant Registrar for signature on the order 14. Date on which the file goes to dispatch section for dispatch the Tribunal Order 15. Date of dispatch of order 16. Date on which file goes to Record Room after dispatch the order