SANKYU INDIA LOGISTICS & ENGINERING PRIVATE LIMITED,HARYANA vs. ACIT CIRCLE-4(1), HARYANA

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ITA 7300/DEL/2025Status: DisposedITAT Delhi15 April 2026AY 2017-184 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the penalty order was unsustainable as the AO failed to consider the assessee's application for immunity. The AO was directed to decide the immunity application first, and if accepted, no penalty would be required.

What were the facts?

The assessee applied for immunity from penalty under Section 270AA of the Income Tax Act. However, the Assessing Officer (AO) passed a penalty order without considering or deciding the immunity application. The CIT(A) dismissed the assessee's appeal against the penalty order.

What were the issues?

Whether a penalty order can be passed without deciding the assessee's application for immunity from penalty.

Which sections of the Income-tax Act were involved?

Section 270A,Section 270AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: YOGESH KUMAR U.S. & SHRI MANISH AGARWAL

Hearing: 23/03/2026Pronounced: 15/04/2026

5,07,847/-. Aggrieved by the order of penalty, Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 18/09/2015, dismissed the Appeal filed by the Assessee.

2.

The Ld. Counsel for the Assessee vehemently submitted that the Assessee had filed an application in Form No. 68 under Section 270AA(2) of the Act on 31/01/2020 to avail the benefit of immunity from penalty.

However, the said application has not been considered/decided by the Revenue, on the other hand, show cause notice has been issued for imposing penalty and ultimately order of penalty came to be passed on 21/09/2021. Thus, submitted that the order of penalty has no legs to stand in the eyes of law. Thus, sought for allowing the Appeal.

3.

Per contra, the Ld. Departmental Representative relying on the orders of the Lower Authorities, sought for dismissal of the Appeal.

4.

We have heard both the parties and perused the material available on record. As could be seen from the record, Assessee has filed an application in Form No. 68 under Section 270AA(2) of the Act on 30/01/2020 itself to avail benefit of immunity from penalty. As per the Assessee, no order has been passed on the said application filed by the Assessee and without disposing the application for immunity, order of penalty has been passed. The Revenue has not brought any material to contradict the said facts canvassed by the Ld. Assessee's Representative.

In view of the same, we direct the A.O. to consider the application for immunity filed by the Assessee in accordance with law and if the application is accepted there shall not be any requirement of passing the penalty order, on the contrary if the application for immunity is rejected by the Revenue, A.O. is at liberty to initiate penalty proceedings afresh.

Accordingly, we set aside the order of penalty with a liberty to A.O. to initiate fresh penalty proceedings if so required after disposing application for immunity filed by the Assessee for the year under consideration.

5.

In the result, Appeal of the Assessee is partly allowed for statistical purpose.

(A.Y 2018-19) 6. In this case, the Assessee has filed application for immunity and the immunity under Section 270AA of the Act was granted to the Assessee. However, the Ld. A.O. proceeded to issues order of penalty under Section 270A vide order dated 21/09/2021. Considering the fact that Assessee has already been granted with immunity under Section 270AA(4) of the Act, the subsequent order of penalty cannot be sustained in the eyes of law. Accordingly, impugned order of penalty and the order of the Ld. CIT(A) for the year under consideration are hereby set aside.

6.

In the result, Appeal of the Assessee in is allowed.

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