INCOME TAX OFFICER, FARIDABAD vs. RIVET HEALTH CLUB PRIVATE LIMITED, FARIDABAD

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’: NEW DELHI BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.7664/Del/2025 (ASSESSMENT YEAR: 2016-17) Income Tax Officer, Rivet Health Club Pvt. Ltd., Faridabad, Haryana-121001. FF9 Vishnu Palace, Vs. Near Neelam Flyover, Sector-20B, Faridabad, Haryana-121001. PAN-AAGCR1343A (Appellant) (Respondent) Assessee by Shri Dishant Sethi, Adv. and Shri Shyam Sunder, Adv. Department by Ms. Ankush Kalra, Sr. DR Date of Hearing 09/04/2026 Date of Pronouncement 09/04/2026 O R D E R PER MANISH AGARWAL, AM: This appeal is filed by the Revenue against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A) in short], dated 12.09.2025 in Appeal No. NFAC/2015-16/1006586 arising out of the penalty order passed u/s 271(1)(c) of the Income Tax Act, 1961 (the Act, in short) dated 17.09.2021 for Assessment Year 2016-17. 2. At the time of hearing before us, the Ld. Counsel for assessee submitted that the penalty levied u/s 271(1)(c) of the Act has no legs to stand, because the corresponding quantum additions amounting of Rs.95,00,000/- for Assessment Year 2016-17 stand already deleted by Co-ordinate Bench of ITAT, Delhi vide its order dated 06.11.2024 in ITA NO. 103/Del/2021, copy of the same is placed on record.

2 ITA No.7664/Del/2025 ITO vs. Rivet Health Club Private Limited It is thus submitted, that present appeal filed by the Department against the deletion of penalty levied u/s 271(1)(c) of the Act on the such addition by the Ld. CIT(A) deserves to be dismissed. 3. The Ld. Commissioner of Income Tax (Departmental Representative) for Revenue relied on the order of the Assessing Officer. However, she did not dispute the fact that quantum additions in respect of which penalty was levied by the Assessing Officer u/s 271(1)(c) of Income Tax Act for Assessment Years 2016-17 stand already deleted by order of Co-ordinate Bench, Delhi vide its order dated 06.11.2024. 4. Heard the parties and perused the material available on record. Since the quantum additions in respect of which penalty u/s 271(1)(c) of Income Tax Act has been levied by the Assessing Officer, have deleted been by order of Co-ordinate Bench of the ITAT, Delhi in ITA No. 103/Del/2021, we are in agreement with the submissions of the Ld. Counsel for assessee, that the penalty levied by the Assessing Officer u/s 271(1)(c) of Income Tax Act have no legs to stand and therefore, present appeal filed by the revenue against the impugned appellate order of the Ld. CIT(A) deserves to be dismissed. We take support from the order of Hon’ble Supreme Court in the case of K.C. Builders vs. ACIT 135 Taxman 461 (SC). In view of the foregoing, all the grounds of appeal taken by Revenue are dismissed. 5. In the result, the appeal filed by Revenue is dismissed. Order pronounced in the open court on 09.04.2026.

S dSd/- Sd/- (MAHAVIR SINGH) (MANISH AGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 16.04.2026. *PK, Sr. Ps*

3 ITA No.7664/Del/2025 ITO vs. Rivet Health Club Private Limited Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI