AZURE POWER URANUS PRIVATE LIMITED,DELHI vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1(1), DELHI, DELHI

ITA 6222/DEL/2026Status: DisposedITAT Delhi28 September 2026AY 2020-2111 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that penalty proceedings are distinct from assessment proceedings and the PCIT cannot direct the Assessing Officer (AO) to initiate penalty proceedings under Section 263. The revisionary order was quashed as the PCIT's jurisdiction was not justified.

What were the facts?

The assessee filed its return of income declaring losses. The assessment was completed with additions to the returned losses, but penalty proceedings under Section 270A were not initiated. The Principal Commissioner of Income Tax (PCIT) invoked revisionary powers under Section 263, holding the assessment order erroneous and prejudicial to revenue for not initiating penalty proceedings.

What were the issues?

Whether the PCIT can direct the initiation of penalty proceedings under Section 263 when the AO has not initiated them during the assessment proceedings.

Which sections of the Income-tax Act were involved?

Section 263,Section 270A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “F”, DELHI

Before: SH. M. BALAGANESH & SH. SUDHIR KUMAR

For Appellant: Shri Salil Kapoor, Adv., Ms. Soumya Singh, Adv, Ms. Sejal Arora, Adv
Hearing: 14/09/2026Pronounced: 28/09/2026

PER SUDHIR KUMAR, JUDICIAL MEMBER:

This is appeal in ITA No. 6222/Del/2026 for A.Y.2020-21 arises out of the order by the Ld. Pr. Commissioner of Income Tax, Delhi-1 dated 31-03-2026 [hereinafter referred to as “Ld. Pr. CIT in short”] against the assessment order u/s 143(3)r.w.s.144C(3) the Income Tax Act, 1961(hereinafter referred to as Act) dated 31-10-3-2023 by the Ld. Assessment Unit Income Tax Department (hereinafter referred to as ld. AO).

2.

The assessee has raised the following grounds in appeal:

1.

That on the facts and in the circumstances of the case and in law, the impugned order dated 31-03-2026 passed by the Principal Commissi

The order continues below.

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