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Facts
The assessee preferred an appeal against an order levying penalty under section 271(1)(c) of the Income Tax Act. The original assessment order was dated 15.12.2018, and the penalty order was dated 27.06.2019. The CIT(A) had previously allowed the assessee's quantum appeal and sent the matter back for a fresh assessment.
Held
The Tribunal noted that the assessee's quantum appeal was allowed and the matter was sent back for a fresh assessment, during which no addition was made. Therefore, the Tribunal held that there was no justification for the penalty imposed on the original assessment order.
Key Issues
Whether the penalty levied under Section 271(1)(c) is sustainable when the quantum appeal has been allowed and no addition has been made in the set aside proceedings.
Sections Cited
271(1)(c)
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Income Tax Appellate Tribunal, DELHI BENCHES: G : NEW DELHI
Before: SHRI ANUBHAV SHARMA & SHRI NAVEEN CHANDRA
Assessment Year: 2011-12 Sanjay Jain, Vs ITO, D-386, Sector-10, Ward-3(3), Noida, Noida. Uttar Pradesh – 201 301. PAN: ADGPJ0804Q (Appellants) (Respondents) Assessee by : Shri Shantanu Jain & Shri Jahanvi Khanna, Advocates Revenue by : Shri Sushil Kumar Kulheri, Sr. DR Date of Hearing : 30.09.2025 Date of Pronouncement : 29.10.2025 ORDER
PER ANUBHAV SHARMA, JM:
This appeal is preferred by the assessee against the order dated 27.09.2021 of the Commissioner of Income-tax (Appeals), NFAC, Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in appeal No.CIT (Appeals), GHAZIABAD/10264/2019-20 arising out of the appeal before it against the order dated 27.06.2019 passed u/s 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the ITO, Ward-3(3), Noida (hereinafter referred to as the Ld. AO).
On hearing both the sides, we find that by way of the impugned order, the penalty imposed u/s 271(1)(c) of the Act was challenged, but, the subsequent developments are that by order dated 30.12.2024 the assessee’s quantum appeal was allowed by the CIT(A) and the matter was sent back to the AO for making a fresh assessment of income of the appellant and, thereupon by order dated 29.09.2025, in the set aside proceedings, no addition has been made.
In the light of the aforesaid circumstances, no justification is left in the penalty which was levied on the original assessment order dated 15.12.2018. Accordingly, the appeal of the assessee is allowed and the impugned penalty order dated 27.06.2019 is quashed.