RUBY SINGH,DELHI vs. DCIT, CENTRAL CIRCLE-8, DELHI

ITA 2827/DEL/2026Status: DisposedITAT Delhi29 September 2026AY 2013-148 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the penalty levied under Section 271(1)(c) of the Act was untenable in law and directed its deletion. The primary reasoning was based on the fact that the Hon'ble Delhi High Court had admitted substantial questions of law in appeals concerning the quantum additions for all the assessment years under consideration. The Tribunal relied on the High Court's own precedents, specifically CIT vs. Liquid Investment and Trading Co. and Principal Commissioner of Income Tax, (Central)-2 vs. Harsh International (P.) Ltd., which established that if the assessment itself is debatable, as evidenced by the admission of substantial questions of law by the High Court, then penalty proceedings cannot survive. The Tribunal noted that the Hon'ble Delhi High Court, in a related matter, had observed that if the assumption of jurisdiction by the AO is found to be unlawful, the assessment orders and any findings of concealment would be without basis. Therefore, the penalty was deleted as it had become debatable. The issue of violation of principles of natural justice and precise charge was not explicitly decided due to the focus on the debatable nature of the issue.

What were the facts?

The assessee, Ms. Ruby Singh, filed seven appeals against orders of the CIT(A)-24, New Delhi, dated January 6, 2026. These appeals pertained to assessment years 2013-14 to 2018-19. The assessments were framed by the ACIT, Central Circle-8, Delhi, under Section 147 read with Section 143(3) of the Income-tax Act, 1961, on February 8, 2022. Penalties under Section 271(1)(c) of the Act were levied by the ACIT for the same assessment years on November 29, 2023. The dispute involves additions made by the Assessing Officer (AO) on account of unexplained credits of ₹75 lakhs and ₹2,05,000, which were confirmed by the Tribunal. The penalty was levied at 100% of the concealed income, amounting to ₹23,11,500. The CIT(A) confirmed the penalty.

What were the issues?

The Tribunal had to decide the following issues: 1. Whether the penalty under Section 271(1)(c) of the Act was sustainable when there was no precise charge regarding concealment of income or furnishing inaccurate particulars of income. 2. Whether the penalty could be levied when a substantial question of law concerning the assessment proceedings had been admitted by the Hon'ble High Court. 3. Whether penalty is automatic when quantum additions are sustained by the Tribunal, or if it can be decided independently. 4. Whether the AO violated principles of natural justice by not providing a proper opportunity of being heard. Assessee's contentions: - There was no precise charge for penalty levy (concealment or inaccurate particulars). - Penalty cannot be levied when the Hon'ble High Court has admitted a substantial question of law. - Penalty is not automatic when quantum is sustained; it can be decided independently. - The AO violated principles of natural justice. - The assessee relied on the decisions in CIT vs. Liquid Investment and Trading Co. and Principal Commissioner of Income Tax, (Central)-2 vs. Harsh International (P.) Ltd. Revenue's contentions: - The judgment records no specific contentions for the revenue on these grounds.

Which sections of the Income-tax Act were involved?

Section 147,Section 143(3),Section 271(1)(c),Section 274,Section 131,Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH-E : NEW DELHI

Before: SHRI MAHAVIR SINGH & SHRI MANISH AGARWAL

For Appellant: Shri Shailesh Gupta, Shri Mihir Aggarwal, Advocates
For Respondent: Shri Tarun Sharda, Senior DR
Hearing: 14.07.2026Pronounced: 29.09.2026

Per Mahavir Singh, Vice President :

These seven appeals by the assessee are arising out of different orders of CIT(A)-24, New Delhi, all dated 6 January, 2026. Assessments were framed by the ACIT, Central Circle-8, Delhi for the assessment years 2013-14 to 2018-19 under Section 147 read with Section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’), vide orders dated 8" February, 2022. The penalties under dispute were levied by the ACIT, Central Circle-8, Delhi for

The order continues below.

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