DEPUTY COMMISSIONER OF INCOME TAX CIRCLE 3(1)(1) AHMEDABAD, AHMEDABAD vs. N K INDUSTRIES LTD, AHMEDABAD

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ITA 1649/AHD/2024Status: DisposedITAT Ahmedabad23 April 2026AY 2011-123 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s order deleting the penalty. It noted that all additions made to the assessee's income had been deleted by the ITAT in quantum proceedings.

What were the facts?

The Revenue appealed against the deletion of penalty levied under Section 271(1)(c) by the CIT(A). The penalty was based on additions made to the assessee's income, which were subsequently deleted by the ITAT.

What were the issues?

Whether penalty under Section 271(1)(c) can be sustained when the additions on which it was based have been deleted. The validity of penalty in light of deletion of additions by higher authorities.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 250,Section 143(3),Section 36(1)(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SMT. ANNAPURNA GUPTA & SHRI SIDDHARTHA NAUTIYAL

For Appellant: Shri Biren Shah, A.R, Shri Alpesh Parmar, CIT.DR
For Respondent: Shri Alpesh Parmar, CIT.DR
Hearing: 08/04/2026

PER ANNAPURNA GUPTA, AM:

The present appeal has been filed by the Revenue against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (hereinafter referred to as “NFAC”), Delhi (hereinafter referred to as “CIT(A)”) dated 27.07.2024 passed

ITA No.1649/Ahd/2024 [DCIT vs. N K Industries Ltd.] A.Y. 2011-12 - 2 –

under Section 250 of the Act deleting penalty levied u/s.271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as the “Act”).

2.

Orders of the authorities below reveal that penalty in the present case was levied on the assessee on following additions made to its income in the assessment framed u/s.143(3) of the Act:

Particulars Rs. Loss on account of Trading in Wash Cotton 44,77,69,621 Seed Oil Unexplained expenses as per Debit 32,79,68,772 Disallowance u/s 36(1)(iii) 1,45,18,708 Concealed Income as per the Penalty 79,02,57,101 Order dated 26.03.2018 Tax on above 26,25,03,650 Penalty levied in the Impugned Order 26,25,03,650

3.

The Ld. CIT(A) noted that the aforestated additions stood all deleted by the ITAT and accordingly, he deleted the penalty levied in the hands of the assessee.

4.

Before us, Ld. DR fairly agreed that as on date the order of the ITAT deleting all additions made in quantum proceedings stood, though the Revenue has filed the appeal against the order of the ITAT Ahmedabad, which is pending for adjudication before the Hon’ble High court.

5.

Noting the above facts, we see no reason to interfere in the order of the Ld. CIT(A) who has found no case for levy of penalty

ITA No.1649/Ahd/2024 [DCIT vs. N K Industries Ltd.] A.Y. 2011-12 - 3 –

finding all additions made in the hands of the assessee to have been deleted by the ITAT in its order passed in quantum proceedings.

6.

In the result, appeal filed by the Revenue is dismissed.

This Order pronounced on 23/04/2026

Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad; Dated 23/04/2026 S. K. SINHA True Copy आदेश क� �ितिल�प अ�े�षत/Copy of the Order forwarded to : अपीलाथ� / The Appellant 1. ��यथ� / The Respondent. 2. 3. संबंिधत आयकर आयु� / Concerned CIT आयकर आयु�(अपील) / The CIT(A)- 4. 5. �वभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad गाड� फाईल / Guard file. 6. आदेशानुसार/ BY ORDER,

उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad

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