AI Structured Summary
Not yet generated for this judgment
Judgment
PER SANJAY AWASTHI, ACCOUNTANT MEMBER:
This appeal arises from order dated 21.04.2026, passed u/s 250 of the Income Tax Act, 1961 (hereafter as “the Act”), by NFAC.
In this case, the Ld. AO levied a penalty of Rs.19,65,00,000/- u/s 271(1)(c) of the Act, vide order dated 22.03.2025.
Right at the outset, the Ld. AR placed for the perusal of the Bench an order of coordinate bench of ITAT dated 26.03.2025 [ITA No.921/Del/2024] in his own case. This order of ITAT pertains to the quantum matter for AY 2015-16 regarding which the impugned penalty was levied. It was pointed out that the ITAT’s order is dated 26.03.2025, whereas the order of AO is dated 22.03.2025. Thereafter, the assessee carried this matter before the Ld. CIT(A) who deleted the penalty following the ITAT’s order in the quantum matter.
The Ld. DR supported the order of AO and stated that this matter has not attained finality, as the Department has challenged it in further appeal, and therefore the matter may be restored back to the file of Ld. AO for awaiting the order of the Hon’ble Allahabad High Court. In this regard ground of appeal no.3 was specifically brought to our notice.
We have heard the submissions of Ld. AR/DR. In this case, the quantum matter has been decided in favour of the assessee and the substantive addition has been deleted. Accordingly, as of now there cannot be any penalty u/s 271(1)(c) of the Act d’hors the quantum. Accordingly, we uphold the order of Ld. CIT(A) through which the impugned penalty has been deleted.
In the result, the appeal of the Revenue is dismissed.