ABDULWAHID ABDULKARIM QURESHI,SANGAMNER vs. INCOME TAX OFFICER, WARD 2, AHMEDNAGAR
Facts
The Assessing Officer levied a penalty of Rs. 47,94,700/- under Section 271(1)(c) of the Income Tax Act, 1961, based on an addition of Rs. 1,38,31,394/- treated as unexplained cash credit under Section 68, which was sustained by the Ld. CIT(A) / NFAC. The assessee filed an appeal against this order with a 128-day delay, which was subsequently condoned by the Tribunal.
Held
The Tribunal observed that a previous Tribunal order in the assessee's own case for the same assessment year had already deleted the original addition made by the Assessing Officer. Since the very foundation for levying the penalty under Section 271(1)(c) no longer existed due to the deletion of the underlying addition, the Tribunal directed the deletion of the penalty.
Key Issues
Whether a penalty levied under Section 271(1)(c) for unexplained cash credit can be sustained when the underlying addition itself has been deleted by a prior Tribunal order.
Sections Cited
271(1)(c), 68
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE
Before: SHRI R. K. PANDA & SHRI VINAY BHAMORE
आदेश की प्रतितिति अग्रेतिि/Copy of the Order is forwarded to: 1. अपील र्थी / The Appellant; प्रत्यर्थी / The Respondent 2. 3. The concerned Pr.CIT, Pune 4. DR, ITAT, ‘A’ Bench, Pune ग र्ड फ ईल / Guard file. 5. आदेशानुसार/ BY ORDER,
// True Copy // Assistant Registrar आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune
S.No. Details Date Initials Designation 1 Draft dictated on 05.01.2026 Sr. PS/PS 2 Draft placed before author 05.01.2026 Sr. PS/PS Draft proposed & placed before the 3 JM/AM Second Member Draft discussed/approved by Second 4 AM/AM Member 5 Approved Draft comes to the Sr. PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr. PS/PS 7 Date of uploading of Order Sr. PS/PS 8 File sent to Bench Clerk Sr. PS/PS Date on which the file goes to the Office 9 Superintendent 10 Date on which file goes to the A.R. 11 Date of Dispatch of order