B R MORDEN SCHOOL,PAURI vs. I T O ,EXEMPTION WARD, DEHRADUN

ITA 28/DDN/2026Status: DisposedITAT Dehradun12 March 2026AY 2017-18Bench: SHRI MAHAVIR SINGH (Vice President), SHRI MANISH AGARWAL (Accountant Member)2 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the quantum appeal, which formed the basis for the penalty, had been restored for de novo assessment, the penalty proceedings under Section 271B had no legal standing. Consequently, the penalty was deleted, with the AO retaining the liberty to initiate fresh proceedings if warranted by the de novo assessment.

What were the facts?

The assessee, B.R. Morden School Samiti, challenged a penalty levied under Section 271B for Assessment Year 2017-18. The Ld. CIT(A) had upheld the penalty. The assessee's quantum appeal for the same assessment year had previously been restored to the AO for a de novo assessment by the Tribunal.

What were the issues?

The key legal issue was whether a penalty under Section 271B could be sustained when the underlying quantum assessment, on which the penalty was based, had been set aside and restored for a de novo assessment.

Which sections of the Income-tax Act were involved?

Section 271B,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DEHRADUN “”DB” BENCH: DEHRADUN

Before: SHRI MAHAVIR SINGH & SHRI MANISH AGARWAL

For Appellant: Shri Rajiv Sahni, CA
For Respondent: Shri Amar Pal Singh, Sr.DR
Hearing: 10.03.2026Pronounced: 12.03.2026

PER MANISH AGARWAL, AM : The present appeal is filed by assessee against the order dated 05.12.2025 passed by Ld. Commissioner of Income Tax (A), NFAC, Delhi [“Ld. CIT(A)”] u/s 250 of the Income Tax Act, 1961 [“the Act”] against the penalty order dated 21.09.2022 passed u/s 271B of the Act pertaining to Assessment Year 2017-18. 2. Heard the contentions of both parties and perused the material available on record. It is stated by Ld. AR that the quantum appeal filed by the assessee for the captioned assessment year against the assessment order passed has already been restored to the file of AO by the Tribunal for passing for denovo assessment. Thus, the current penalty proceedings initiated in the

The order continues below.

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