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Judgment
PER SATBEER SINGH GODARA, JM
These assessee’s three appeals ITA No. 3042, 3043 & 3044/Del/2026 for assessment years 2016-17, 2018-19 & 2019-20, arise against the Commissioner of Income Tax (Appeals)-24 [in short, the “CIT(A)”], New Delhi’s orders, all dated 06.01.2026 passed in case nos. CIT(A), Delhi-24/10847/2015-16, 10391/2017-18 & 10628/2018-19 involving proceedings under section 221(1) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’); respectively.
Heard both the parties at length. Case files perused.
We notice at the outset during the course of hearing that the assessee/appellant herein has raised her identical sole substantive ground that both the learned lower authorities have erred in law and on facts, inter alia, in levying section 221(1) penalty(ies) of Rs.1,45,055/-; 5,42,377 and Rs. 7,02,038/-; assessment year-wise; respectively, forming the sole subject matter for the tribunal’s apt adjudication.
Both the parties vehemently reiterate their respective stands against and in support of the impugned penalty. We notice in this factual backdrop that there is not much a dispute between the parties that the assessee’s corresponding quantum appeals challenging validity of the impugned reopening(s) in all these three years stand admitted in hon’ble jurisdictional high court’s vide order dated 27.03.2025. The Revenue is indeed very fair in not disputing this clinching factual position. We accordingly are of the considered view in light of PCIT Vs. Harsh International Pvt. Ltd. (2021) 431 ITR 118 (SC) that such a penalty could not be held as sustainable since having become a debatable issue after admission of her tax appeal in hon’ble jurisdiction high court. We adopt the very reasoning hereinabove as well to reverse both the learned lower authorities’ identical actions levying section 221 penalty(ies) in question in very terms.
All other remaining pleadings between the parties on merits stand rendered academic.
These assessee’s three appeals ITA Nos. 3042, 3043 & 3044/Del/2026 are allowed in above terms. A copy of this common order be placed in the respective case files.