Bhanu Pratap Singh vs Income Tax Officer

The appeal in ITA No.1551/Del/2026 for AY 2012-13, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] dated 28.01.2026 against the order of assessment passed u/s 271(1)(c) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 18.03.2020 by the Assessing Officer, ITO, Ward-1(5), Ghaziabad (hereinafter referred to as ‘ld. AO’).

The only issue to be decided in this appeal is as to whether the ld CIT(A) was justified in confirming the levy of penalty u/s 271(1)(c) of the Act in the facts and circumstances of the instant case.

We have heard the rival submissions and perused the material available on record. the ld AR before us at the outset placed on record the copy of the Tribunal order in the quantum proceedings for AY 2012-13 in ITA No. 711/Del/2026 dated 08.05.2026 wherein, the quantum appeal has been restored to the file of ld NFAC for denovo adjudication. Since, the quantum proceedings are set aside to the file of the ld NFAC, we deem it fit and appropriate to restore the penalty proceedings also to the file of ld NFAC. The ld NFAC is directed to decide the levy of penalty, if it is found that assessee had either concealed the particulars of income or furnished inaccurate particulars of income. A clear finding to this effect need to be given by the ld NFAC before resorting to levy of penalty. With these observations, the grounds raised by the assessee are allowed for statistical purposes.

In the result, the appeal of the assessee is allowed for statistical purposes.