SANTRAM,DEHRADUN vs. ITO WARD 1(1)(3), DEHRADUN
Facts
The assessee filed an appeal against a penalty levied under Section 270A of the Income Tax Act. The penalty was imposed following an assessment order for AY 2017-18. The quantum appeal for the same assessment year had previously been restored to the Assessing Officer for de novo assessment by the Tribunal.
Held
The Tribunal held that since the quantum appeal was restored for de novo assessment, the penalty proceedings initiated based on the original assessment order could not stand. Therefore, the penalty levied was deleted, with liberty for the AO to initiate fresh proceedings if warranted after the de novo assessment.
Key Issues
Whether a penalty levied under Section 270A can be sustained when the underlying quantum assessment has been set aside and restored for de novo assessment.
Sections Cited
Section 270A, Section 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DEHRADUN CIRCUIT BENCH: DEHRADUN
Before: SHRI MAHAVIR SINGH & SHRI MANISH AGARWAL
ITA No. 3/DDN/2026
IN THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN CIRCUIT BENCH: DEHRADUN BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENT & SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No. 3/DDN/2026 [Assessment Year : 2017-18] Santram vs ITO Near Subhash Chandra Ward-1(1)(3) Bose Academy, Nathuwala, Dehradun Dehradun-248001. PAN-DEMPS4349P APPELLANT RESPONDENT Appellant by Shri Rajiv Sahni, CA Respondent by Ms. Poonam Sharma, CIT DR Date of Hearing 09.03.2026 Date of Pronouncement 09.03.2026 ORDER PER MANISH AGARWAL, AM : The present appeal is filed by assessee against the order dated 24.12.2025 passed by Ld. Commissioner of Income Tax (A), NFAC, Delhi [“Ld. CIT(A)”] u/s 250 of the Income Tax Act, 1961 [“the Act”] arising out of penalty order dated 24.03.2025 passed u/s 270A of the Act pertaining to Assessment Year 2017-18.
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 years against the assessment order passed has already been restored back to the file of the AO by the Tribunal passing for denovo assessment vide its order passed in ITA No.57/DDN/2025 for Assessment Year 2017-18 Page | 1
ITA No. 3/DDN/2026
dt. 09.07.2025. Thus, the current penalty proceedings initiated in the said order has no legs to stand. Accordingly, we delete the penalty so levied. The AO is at liberty to initiate the proceedings, if desired, in the set aside proceedings in accordance with law. With these directions, appeal filed by the assessee is allowed.
In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 09.03.2026.
Sd/- Sd/- (MAHAVIR SINGH) (MANISH AGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Date- 10.03.2026 *Amit Kumar, Sr.P.S*
