KIRAN BALA GUPTA,HYDERABAD vs. ITO, WARD-10(1), HYDERABAD
In the result, appeal filed by the assessee is partly allowed in terms of our aforesaid observations
ITA 341/HYD/2025[2012-13]Status: DisposedITAT Hyderabad20 Feb 2026AY 2012-13
Bench: Shri Manjunatha G. & Shri Ravish Soodआ.अपी.सं /Ita No.341/Hyd/2025 (िनधा"रण वष"/Assessment Year: 2012-13) Smt. Kiran Bala Gupta, Vs. Income Tax Officer, Hyderabad. Ward-10(1), Pan: Ahvpg6893K Hyderabad. (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Shri Av Raghuram, Advocate राज" व "ारा/Revenue By: Ms. Aditi Goyal, Sr. Ar सुनवाई की तारीख/Date Of Hearing: 04/02/2026 घोषणा की तारीख/Date Of 20/02/2026 Pronouncement: आदेश / Order Per. Ravish Sood, J.M: The Present Appeal Filed By The Assessee Is Directed Against The Order Passed By The Commissioner Of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, Dated 20/12/2024, Which In Turn Arises From The Order Passed By The Assessing Officer (For Short, “Ao”) Under Section 271(1)(C) Of The Income Tax Act, 1961 (For Short, “The Act”), Dated 30/08/2022 For The Assessment Year (Ay) 2012-13. The Assessee Has Assailed The Impugned Order Of The Cit(A) On The Following Grounds Of Appeal:
For Appellant: Shri AV Raghuram, AdvocateFor Respondent: Ms. Aditi Goyal, Sr. AR
Section 10(38)Section 143(2)Section 143(3)Section 271(1)(c)
…table and, consequently, the penalty under section 271(1)(c) of the Act is not leviable in respect of such addition. Our aforesaid view is fortified by the judgment of the Hon’ble High Court of Delhi in the case of PCIT v. Harsh International Pvt. Ltd. (2021) 431 ITR 118 (Delhi). The Hon’ble High Court of Delhi in its aforementioned judgment had categorically held that once the High Court admits an appeal on a substantial question of law arising from the quantum addition, the issue necessarily becomes debatable and consequently penalty proceedings under section 271(1)(c) cannot be imposed in respect of such addit…
