ARTCRAFT SALES,NEW DELHI vs. ASSESSMENT UNIT INCOME TAX DEPARTMENT, NEW DELHI

ITA 6311/DEL/2026Status: DisposedITAT Delhi28 September 2026AY 2020-213 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal restored the issue to the NFAC for a decision on merit, granting the assessee a final opportunity to present its case. This was done because the assessee's quantum appeal had been restored before the NFAC.

What were the facts?

The assessee's return of income was selected for scrutiny due to excess contribution to a Gratuity Fund. The Assessing Officer disallowed the contribution and added it to the total income, subsequently levying a penalty under Section 270A. The assessee's appeal to the NFAC was dismissed.

What were the issues?

Whether the penalty under Section 270A was correctly levied when the quantum appeal was still pending restoration. The need to provide a final opportunity to the assessee for substantiating its case.

Which sections of the Income-tax Act were involved?

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: Ms. Sayantani Kanungo, Adv
For Respondent: Ms. Harpreet Kaur Hansra, Sr. DR
Hearing: 24/09/2026Pronounced: 28/09/2026

PER SUDHIR KUMAR, JUDICIAL MEMBER:

This is appeal filed by the assessee against the order dated 09- 04-2026 of the National Faceless Appeal Centre (NFAC)Delhi [hereinafter referred to as “Ld. NFAC”] relevant to penalty order dated 29-03-2025 passed under section 270A of the Income Tax Act, 1961(in short “the Act”).

2.

The brief facts of the case are that the assessee filed return of income declaring total income at Rs. Nil. The case of assessee was selected for complete scrutiny under CASS for the reason “Excess

contribution to Provident Fund, Superannuation Fund or Gratuity Fund”. In the assessment proceeding the Assessing Officer disallowed the contribution to Gratuity Fund of Rs.4,35,225/- and added to the total income

The order continues below.

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