ANSHU PRIYADARSHINI,DWARKA vs. WARD NO. 43(4), NEW DELHI

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ITA 7351/DEL/2025Status: DisposedITAT Delhi29 December 2025AY 2011-12Bench: SHRI VIKAS AWASTHY (Judicial Member)4 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the assessment order was set aside for de-novo assessment, the basis for levying the penalty had been eroded. Consequently, the penalty proceedings could not survive.

What were the facts?

The appeal was against a penalty order confirming the levy under Section 271(1)(C) of the Income Tax Act for AY 2011-12. The original assessment order had been passed under Section 144/147. However, the Tribunal had previously set aside the assessment order for de-novo assessment.

What were the issues?

Whether penalty proceedings can survive when the assessment order, on which the penalty was based, has been set aside for de-novo assessment.

Which sections of the Income-tax Act were involved?

Section 271(1)(C),Section 144,Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “SMC”, DELHI

Hearing: 17/12/2025Pronounced: 17/12/2025

ORDER

PER VIKAS AWASTHY, JM:

1.

This appeal by the assessee is directed against the order of Commissions of Income Tax-(Appeals) (hereinafter referred to as ‘the CIT(A)’) dated 18.09.2025 confirming penalty levied u/s.271(1)(C) of the Income Tax Act, 1961(hereinafter referred to as ‘the Act’), for AY 2011-12.

2.

Shri Abhinarayan Mishra, appearing on behalf of the assessee submitted that the Tribunal in assessee’s appeal on merits in ITA 1576/Del/2024 vide order 14.08.2024 has restored the case back to the Assessing Officer (AO) for de-novo assessment. The present appeal is in respect of penalty levied by the AO on the additions made in assessment order dated 15.12.2018 passed u/s.144/147 of the

3.

Shri Keshav Kishore Anand, representing the department fairly stated that the Tribunal has restored the matter back to the AO for denovo assessment.

4.

Both sides heard. It is an admitted fact that the Tribunal in ITA 1576/Del/2024 for AY 2011-12 vide order dated 14.08.2024 has restored case of the assessee to AO for denovo assessment. Since, the substratum for levy of penalty has eroded the penalty would not survive.

5.

In the result, impugned order is set aside and appeal of the assessee is allowed.

Order pronounced in the open court on Wednesday the 17th day of December, 2025.

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