ANIL KUMAR KHANDELWAL,HALDWANI vs. CIT APPEAL NFAC, DELHI
In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal held that since the addition on which the penalty was levied has been deleted, the penalty cannot survive. Therefore, the Assessing Officer was directed to delete the penalty.
What were the facts?
The assessee filed an appeal against the penalty levied under Section 271AAC. The penalty was based on an addition made in the assessment order. However, the Tribunal had previously deleted the said addition.
What were the issues?
Whether a penalty levied under Section 271AAC can be sustained when the underlying addition has been deleted by the appellate authority.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “DB” NEW DELHI
Before: SHRI CHALLA NAGENDRA PRASAD & SHRI AVDHESH KUMAR MISHRA
आदेश /O R D E R
PER C.N. PRASAD, J.M.
This appeal is filed by the assessee against the order of the Ld. CIT(Appeals)-NFAC, Delhi dated 07.02.2024 for the AY 2017-18 in sustaining the penalty levied u/s 271AAC of the Act.
Ld. Counsel for the assessee submitted that the Tribunal vide dated 23.06.2023 deleted the addition/disallowance made in the assessment order passed u/s 143(3) of the Act. Ld. Counsel submits that since the impugned penalty order was passed on the basis of the addition/disallowance made in the assessment order made u/s 143(3) has been set aside by the Tribunal the penalty levied u/s 271AAC has no legs to stand.
On perusal of the order of the Tribunal, we observed that the quantum addition made in the assessment order passed u/s 143(3) has been deleted by the Tribunal in its order dated 23.06.2023.
Therefore, the penalty levied on the basis of such addition which was made while completing the assessment u/s 143(3) will not survive. Thus, we direct the Assessing Officer to delete the penalty levied u/s 271AAC for the assessment year under consideration.
Grounds raised by the assessee are allowed.
In the result, appeal of the assessee is allowed.
Order pronounced in the open court on 16/05/2025
More judgments on Section 271AAC
- Vikas Ashokkumar Masand, Ahmedabad vs The Dy. Commissioner of Income Tax…ITA 3130/AHD/2026[A.Y. 2017-18]Status: Disposed19 Oct 2026
- Income Tax Officer, Ward-1(3), Jamnagar vs Rameshbhai Harvara, JamnagarITA 450/RJT/2025[2017-18]Status: Disposed15 Oct 2026AY 2017-18
- Rameshbhai Harvara, Jamnagar vs ITO Ward 1(3), JamnagarITA 442/RJT/2025[2017-18]Status: Disposed14 Oct 2026AY 2017-18
- Dineshkumar Chhaganlal Manavadaria, Junagadh vs ITO Ward 1, JunagadhITA 837/RJT/2025[2020-21]Status: Disposed9 Oct 2026AY 2020-21
- Shri Dineshkumar Chhaganlal Manavadaria… vs Income Tax Officer, Ward - 1, JunagadhITA 836/RJT/2025[2019-20]Status: Disposed9 Oct 2026AY 2019-20
Recent GST High Court judgments
Search GST case law →- Shri Yaras Suresh Babu Prabhu Kumar vs. The Union Of INDIATelangana · 27 Oct 2026
- Santa Singh vs. SuperintendentUttarakhand · 27 Oct 2026
- Azaad Builders vs. Assistant Commissioner SGSTUttarakhand · 27 Oct 2026
- Shadab Malik vs. State Of U.P. And 2 OthersAllahabad · 26 Oct 2026
- Salman vs. State Of U.P.Allahabad · 26 Oct 2026
