SEEMA AGARWAL,NEW DELHI vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 27, NEW DELHI, NEW DELHI

PDF · subscribers
ITA 5912/DEL/2025Status: DisposedITAT Delhi27 January 2026AY 2018-19Bench: MS. MADHUMITA ROY (Judicial Member), SHRI NAVEEN CHANDRA (Accountant Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that the CIT(A) had proceeded with the penalty appeal without waiting for the final outcome of the quantum appeal, despite being informed of this. The Tribunal found this to be against the principle of fair play and decided to give the assessee a further opportunity to be heard.

What were the facts?

The assessee's appeal is against an order by the CIT(A) which arose from a penalty order. The CIT(A)'s order was passed despite a request by the assessee to hold penalty proceedings in abeyance until the quantum appeal was finalized.

What were the issues?

Whether the CIT(A) erred in proceeding with penalty appeal without waiting for the outcome of the quantum appeal.

Which sections of the Income-tax Act were involved?

Section 250,Section 271AAC(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES : G : NEW DELHI

Before: MS. MADHUMITA ROY & SHRI NAVEEN CHANDRA

For Respondent: Shri Mahesh Kumar, CIT-DR
Hearing: 27.01.2026Pronounced: 27.01.2026

(Appellant) (Respondent) Assessee by : None Revenue by : Shri Mahesh Kumar, CIT-DR Date of Hearing : 27.01.2026 Date of Pronouncement : 27.01.2026 ORDER PER MADHUMITA ROY:

The instant appeal filed by the Assessee is directed against the order dated 16.07.2025 of the Ld. Commissioner of Income-tax (Appeals), Delhi-29 [hereinafter referred to as the Ld. CIT(A)] u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) arising out of the penalty order dated 26.09.2023 passed by the DCIT, Central Circle-27, New Delhi (hereinafter referred to as ‘the ld. AO’) under Section 271AAC(1) of the Act for Assessment Year 2018-19.

2.

None appeared on behalf of the assessee at the time of call nor has any adjournment been sought for. However, keeping in view the peculiar facts of the matter, we have proceeded to deal with the matter ex parte.

3.

Admittedly, the order dated 16.07.2025 passed by the CIT(A) is an order ignoring the request made by the assessee to keep the penalty appeal proceedings in abeyance till the final outcome of the quantum appeal. Having regard to this particular aspect of the matter and keeping in view the principle of fair play considering which the Ld. CIT(A) could have stayed his hand in moving further with the penalty proceedings as the quantum appeal was not finalized as already brought to the notice of the Ld.CIT(A), we find that the assessee be given a further opportunity of being heard by the Ld.CIT(A) in the quantum proceedings and, hence, the appeal is disposed of by restoring the issue to the file of the Ld. CIT(A) for his consideration afresh.

4.

In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 27.01.2026.

More judgments on Section 271AAC(1)

All 1,211 judgments and leading authorities on Section 271AAC(1) →

Recent GST High Court judgments

Search GST case law →