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Facts
The assessee filed appeals against the levy of penalty under Section 270A of the Income Tax Act for Assessment Years 2017-18 and 2018-19. Prior to this, the ITAT's Co-ordinate Bench had already quashed the underlying assessment orders passed under Section 153A read with Section 144 for these assessment years, citing invalid approval granted under Section 153D of the Act.
Held
The Tribunal held that since the very foundation for the penalty proceedings, i.e., the assessment orders under Section 153A r.w.s. 144, had been quashed by the coordinate bench, the penalty levied under Section 270A could not legally stand. Consequently, the penalty was deleted, and the assessee's appeals were allowed.
Key Issues
Whether penalty levied under Section 270A of the Income Tax Act is sustainable when the underlying assessment orders, passed under Section 153A r.w.s. 144, have been quashed by the ITAT due to invalid approval under Section 153D.
Sections Cited
270A, 153A, 144, 153D
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘G’: NEW DELHI
Before: SHRI SATBEER SINGH GODARA & SHRI MANISH AGARWAL
O R D E R PER MANISH AGARWAL, AM: Both the captioned appeals are filed by the assessee against the common orders passed by Learned Commissioner of Income Tax (Appeals)- 03, Gurgoan [CIT(A) in short] dated 31.01.2025 for Assessment Years 2017-18 and 2018-19 confirming the levy of penalty u/s 270A of the Income Tax Act, 1961 (the Act).
Heard the parties. On perusal of records, we find that the quantum appeals for the captioned Assessment Years i.e. AY 2017-18 and 2018-19 are decided by the Co-ordinate Bench of ITAT, Delhi by a common order in to 1928/Del/2025 for AY 2013-14, AY 2016-17 to AY 2019-20 respectively wherein the coordinate bench has quashed the assessment orders passed u/s 153A r.w.s. 144 of the Act on the ground of validity of the approval granted u/s 153D of the Act vide & 2075/Del/2025 Parveen Tayal vs. DCIT order dated 15.10.2025. The present appeals before us have been filed by Assessee against the imposition of penalty u/s 270A of the Act.
Since, the Co-ordinate Bench of ITAT, Delhi has already quashed the assessment orders passed u/s 153A r.w.s. 144 of the Act wherein penalty proceedings u/s 270A were initiated thus the penalty levied by the Assessing Officer has no legs to stand and therefore, the same is hereby deleted. All the grounds of appeal in both the captioned appeals are allowed.
In the result, the appeals filed by the Assessee are allowed. Order pronounced in the open Court on 18.12.2025.