VASUDEV GARG,FARIDABAD vs. DCTI CC 1 FARIDABAD, FARIDABAD

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ITA 3280/DEL/2025Status: DisposedITAT Delhi28 November 2025AY 2014-152 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the underlying assessments were quashed and deemed bad in law, the penalties levied based on those assessments cannot survive. Therefore, the penalties were directed to be deleted.

What were the facts?

The assessee appealed against penalties levied under Section 271(1)(c) for AY 2012-13 and 2014-15. The original assessments under Section 153A were previously held to be non-est by the Tribunal.

What were the issues?

The primary issue was whether penalties under Section 271(1)(c) could be sustained when the assessment orders on which they were based were declared void.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 153A,Section 143(3),Section 153D

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH, ‘E’: NEW DELHI

Before: SHRI C.N. PRASAD & SHRI NAVEEN CHANDRA

For Respondent: Ms. Amisha S. Gupt, CIT (DR)
Hearing: 19.11.2025Pronounced: 28.11.2025

ORDER PER C.N. PRASAD, JM, These appeals are filed by the assessee against the order of the learned Commissioner of Income Tax (Appeals)-3, Gurgaon [hereinafter referred as “CIT(A)”] against common order of Ld. CIT(A)-3, Gurgaon dated 27.03.2025 for the A.Y. 2012-2013 and A.Y. 2014-15 in sustaining the penalty levied u/s. 271(1)(c) of the Act.

2.

The learned Counsel for the assessee at the outset submitted that the additions made in the assessment framed u/s. 153A r.w.s. 143(3) for the assessment years under consideration i.e. 2012-13 and 2014-15 stands deleted by order of the Tribunal in & 3171/Del/2025 dated 22.09.2025 wherein the Tribunal held that the assessments framed u/s. 153A r.w.s. 143(3) are nonest in the eyes of law. A copy of the order of the Tribunal dated 22.09.2025 is placed on record.

3.

The learned DR fairly accepted the position. 4. Heard rival contentions and perused the order of the Tribunal dated 22.09.2025 which is a common order for assessment years 2012-13 to 2019-20 in to 3176/Del/2025, wherein the Tribunal held that the assessments framed u/s. 153A r.w.s. 143(3) for A.Y. 2012-13 to 2019-20 are nonest in the eyes of law for want of valid approval under Section 153D of the Act. Since the assessments were quashed and held to be bad in law, the penalty levied on the basis of the additions made in the assessments cannot survive and, therefore, allowing these two appeals we direct the AO to delete the penalty levied u/s. 271(1)(c) of the Act for A.Y. 2012-13 and 2014-15. The grounds raised

by the assessee are allowed.

1.

5. In the result, the appeals of the assessee are allowed. Order pronounced in the open court on 28.11.2025 /-- [NAVEEN CHANDRA] [C.N. PRASAD] ACCOUTNANT MEMBER JUDICIAL MEMBER Dated: 28.11.2025 NEHA , Sr.P.S.*

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