MULAYAM SINGH,GHAZIABAD vs. ITO,WARD-1(4), GHAZIABAD
What did the Tribunal hold?
The Tribunal restored the issue of penalty to the CIT(A) for decision on merits, following a previous order that sent the quantum addition back to the CIT(A). The CIT(A) is directed to decide the penalty after adjudicating the quantum appeal.
What were the facts?
The assessee's returned income was significantly enhanced due to an addition on account of short-term capital gain. The penalty levied under Section 271(1)(c) was confirmed by the NFAC.
What were the issues?
Whether the penalty under Section 271(1)(c) is sustainable when the quantum addition is still under dispute and has been restored for fresh adjudication.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘E’, NEW DELHI
Before: SH. N. K. BILLAIYA & MS. ASTHA CHANDRA
ORDER PER N. K. BILLAIYA, AM:
This appeal by the assessee is preferred against the order dated 26.10.2022 by NFAC pertaining to A.Y. 2008-09. 2. The sum and substance of the grievance of the assessee is that NFAC erred in confirming the penalty levied u/s. 271 (1)(c) of the Act.
The roots for the levy of penalty lie in the assessment order dated 10.12.2015 framed u/s. 147/143(3) of the Act. The returned income of Rs.131131/- was assessed at Rs.1792555/- after making an addition on account of short term capital gain of Rs.1661424/-.
The quantum addition travelled upto the Tribunal and this Tribunal in vide order dated 08.10.2018 restored the quarrel to the file of the CIT(A) with a direction to decide the appeal on merit of the case. In the light of the said order of the coordinate Bench the quarrel relating to the penalty is also set aside to the files of the CIT(A). The CIT(A) is directed to decide the issue of levy of penalty u/s. 271(1)(c) of the Act after deciding the quantum appeal. 5. In the result, the appeal of the assessee is allowed for statistical purpose. 6. Decision announced in the open court 01.08.2023.
More judgments on Section 271(1)(c)
- Ajaybhai Dineshbhai Bagdai, Near Central… vs The Income Tax Officer, Ward-1(2)(1), New…ITA 74/RJT/2026[2013-14]Status: Disposed19 Oct 2026AY 2013-14
- Shalin Jayantbhai Desai, Vadodara vs ACIT, Circle-4(2), Vadodara Present…ITA 2569/AHD/2026[2010-11]Status: Disposed19 Oct 2026AY 2010-11
- Neo Structo Construction P. Ltd., Ahmedabad vs The Pr. CIT- 3, AhmedabadITA 1216/AHD/2026[2015-2016]Status: Disposed16 Oct 2026AY 2015-2016
- Hetal Vinodchandra Sheth, Ahmedabad vs The ITO, Ward-5(3)(1), AhmedabadITA 2370/AHD/2025[2014-15]Status: Disposed16 Oct 2026AY 2014-15
- Hetal Vinodchandra Sheth, Ahmedabad vs The ITO, Ward-5(3)(1), AhmedabadITA 2369/AHD/2025[2014-15]Status: Disposed16 Oct 2026AY 2014-15
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