BABU SINGH,GAUTAM BUDDHA NAGAR V. ASSESSMENT UNIT, DELHI

ITA 3440/DEL/2025

AI Insights

The case involves an appeal by Babu Singh against a penalty imposed by the Assessing Officer for non-compliance with statutory notices during the assessment proceedings for the year 2015-16. Initially, the AO levied a penalty of Rs. 20,000 under section 271(1)(b) of the Income Tax Act, 1961, following non-compliance with notices issued under section 142(1). The penalty was contested and subsequently dismissed by the CIT(A). However, the Tribunal's decision to allow the appeal was based on the fact that the original assessment order, which led to the penalty, had been set aside, thus nullifying the basis for the penalty.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 777737 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2015-2016
• Appeal Filed On: 26-05-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: UDHAM SINGH
• Keywords: Set aside; Initiation of penalty proceedings
• Section: 142(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’: NEW DELHI BEFORE SHRI SUDHIR KUMAR, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.3440/Del/2025 (ASSESSMENT YEAR 2015-16) Babu Singh, 138, Village-Mirzapur, P.O.-Dankaur, Distt. Gautam Buddha Nagar, Uttar Pradesh 203201. PAN-EAKPS8485M Vs. Assessment Unit, KNP-W-(100) (6), Income Tax Department (Appellant) (Respondent) Assessee by Shri Udham Singh, Adv. Department by Shri Shyam Manohar Singh, Sr. DR Date of Hearing 25/09/2025 Date of Pronouncement 30/09/2025 O R D E R PER MANISH AGARWAL, AM: This appeal is filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [CIT(A), in short] dated 10.03.2025 in Appeal No. NFAC/2014-15/10297028 arising out of order passed u/s 271(1)(b) of the Act, 1961 (hereinafter referred as ‘the Act’) dated 20.09.2023 for Assessment Year 2015-16. 2. Brief facts of the case are that the assessment of the assessee was completed vide order dated 21.03.2023 passed u/s 147/144 r.w.s 144B of the Act wherein the penalty proceedings u/s 271(1)(b) were initiated for non-compliance of the statutory notices. Thereafter, the AO proceeded with pending penalty proceedings u/s Printed from counselvise.com 2 ITA No.3440/Del/2025 Babu Singh vs. Assessment Unit 271(1)(b) and in terms of order dated 20.09.2023 levied penalty of Rs.20,000/- for non-compliance of the statutory notices issued u/s 142(1) of the Act on 17.01.2023 and 01.02.2023. 3. Against such order, an appeal was preferred by the assessee before the Ld. CIT(A) who vide impugned order dated 10.03.2023 has dismissed the appeal of the assessee therefore, the assessee is in appeal before the Tribunal. 4. Before us, it is submitted by Ld. AR that the appeal filed against assessment order passed on 21.03.2023 u/s 147/144 r.w.s 144B of the Act stood set aside by the Ld. CIT(A), NFAC in terms of the order dated 26.03.2025 with the directions to make fresh assessment in accordance with Rule and timelines. Copy of the said order is placed before us in Paper Book at pages 4 to 11 filed by the assessee. The Ld. AR further submits that since the order under which satisfaction for initiation of present penalty proceedings stood set aside, therefore, consequent order of levying the penalty u/s 271(1)(b) is also liable to be cancelled. 5. On the other hand, the Ld. Sr. DR supports the lower authorities and submits that though the assessment order passed was set aside, however, facts remained that assessee has not made compliance to the statutory notices issued by AO during the course of assessment proceedings, therefore, penalty levied u/s 271(1)(b) of the Act is in accordance with law and such order deserves to be upheld. 6. Heard the parties and perused the materials on record. In the instant case, the assessment order passed u/s 147/144 dated 21.03.2023 ex-party wherein the AO has recorded his satisfaction for initiation of penalty proceedings u/s 271(1)(b) of the Act has been set aside by Ld. CIT(A) for fresh adjudication in terms of the order Printed from counselvise.com 3 ITA No.3440/Del/2025 Babu Singh vs. Assessment Unit dated 26.03.2025 passed u/s 250 of the Act. Further the AO has given effect to such order on 14.05.2025 vide order passed u/s 250/147 r.w.s 144 of the Act and start proceedings for fresh assessment through ITBA, therefore, there remain no order under which satisfaction for initiation of penalty proceedings u/s 271(1)(b) was recorded. In view of these facts, we direct the AO to delete the penalty levied of Rs.20,000/- u/s 271(1)(b) of the Act. Accordingly, all the grounds of appeal are allowed. 7. In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 30.09.2025. Sd/- Sd/- (SUDHIR KUMAR) (MANISH AGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 30.09.2025 PK/Sr. Ps Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "