RAVI VIJAYALAKSHMI,ATHIPATTU vs. ITO, NCW-6(1), CHENNAI

ITA 2887/CHNY/2025Status: DisposedITAT Chennai04 March 2026AY 2016-17Bench: SHRI ABY T VARKEY (Judicial Member), SHRI S. R. RAGHUNATHA (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CIT(A) erred in dismissing the appeal on technical grounds of delay, as the delay was not deliberate and the explanation was plausible. On merits, the Tribunal found that a penalty under section 271(1)(c) cannot be sustained solely on the basis of an addition made under the deeming provisions of section 56(2)(vii)(b) without any independent finding of concealment or furnishing of inaccurate particulars.

What were the facts?

The assessee filed an appeal against the penalty levied under section 271(1)(c) of the Income-tax Act. The penalty was imposed due to an addition made based on stamp duty valuation, which was higher than the actual consideration paid for a property. The CIT(A) dismissed the appeal on grounds of delay without adjudicating the merits.

What were the issues?

1. Whether the CIT(A) was justified in dismissing the appeal as non-maintainable due to a delay of 34 days. 2. Whether penalty under section 271(1)(c) is sustainable when the addition is made solely based on a deeming fiction under section 56(2)(vii)(b).

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 56(2)(vii)(b),Section 143(3),Section 263

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI

Before: SHRI ABY T VARKEY & SHRI S. R. RAGHUNATHA

For Respondent: Ms. R. Anitha, Addl. CIT
Hearing: 29.01.2026Pronounced: 04.03.2026

PER S. R. RAGHUNATHA, AM:

This appeal filed by the assessee against the order of the National Faceless Appeal Centre (NFAC), Delhi (in short ‘CIT(A)’) dated 27.01.2024 for the Assessment Year (A.Y.) 2016-17 in the penalty proceedings u/s.271(1)(c) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 27.09.2022. 2. At the outset we that the present appeal was filed after a delay of 570 days (from 27.03.2024 to 21.10.2025) and

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 271(1)(c)

All 25,141 judgments and leading authorities on Section 271(1)(c) →

Recent GST High Court judgments

Search GST case law →