JARNAIL SINGH,VILLAGE DULLADI, NABHA vs. ITO NABHA, NEAR RAILWAY STATION

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ITA 1658/CHANDI/2025Status: DisposedITAT Chandigarh19 May 2026AY 2017-183 pages
AI SummaryAllowed

What did the Tribunal hold?

The tribunal held that penalty proceedings are dependent on the sustenance of quantum additions. Since the quantum additions were deleted, the penalties could not stand independently and were therefore required to be deleted.

What were the facts?

The assessee's appeal was filed against the penalty imposed for the assessment year 2017-18. The quantum additions that led to the penalty had been deleted by the authorities.

What were the issues?

Whether penalty can be sustained when the underlying quantum additions have been deleted.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DIVISION BENCH, ‘B’ CHANDIGARH

Before: SHRI LALIET KUMAR & SHRI MANOJ KUMAR AGGARWAL

For Appellant: Shri Neelam Kumar
For Respondent: Shri Vivek Vardhan, Addl. CIT, Sr.DR
Hearing: 18.05.2026Pronounced: 19.05.2026

PER LALIET KUMAR, JM

This is an appeal filed by the assessee feeling aggrieved by the order passed

by the ld. Commissioner of Income Tax (Appeals) NFAC [in short ‘the CIT (A)’]

dated 04.12.2025 passed for assessment year 2017-18. 2. In this case, it is informed by the ld. AR that the quantum addition has been deleted by the authorities and the present appeal pertains to imposition of penalty

ITA-1658/CHD/2025 A.Y. 2017-18 2

arising out of assessment/quantum additions. It was submitted by the ld. AR that since the quantum addition had been deleted, therefore, the penalties made in the hands of the assessee are required to be deleted.

3.

The ld. DR had not disputed the above facts.

4.

Having heard the rival contentions of the parties and perusing the material

available on record, it is settled position of law that the penalty proceedings are premise on the sustenance of the quantum addition. Once the quantum additions

are deleted, the penalty proceedings cannot stand on its own. Therefore, they are required to be deleted.

5.

In view of the above, penalty proceedings are deleted.

6.

In the result, appeal of the assessee is allowed. Order pronounced on 19.05.2026. (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER “Poonam”

ITA-1658/CHD/2025 A.Y. 2017-18 3

आदेश की "ितिलिप अ"ेिषत/ Copy of the order forwarded to : अपीलाथ"/ The Appellant

1.

""थ"/ The Respondent 2. आयकर आयु"/ CIT 3. िवभागीय "ितिनिध, आयकर अपीलीय आिधकरण, च"ीगढ़/ DR, ITAT, CHANDIGARH 4. गाड" फाईल/ Guard File 5.

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