INCOME TAX OFFICER, LAXMI NAGAR, DELHI V. PCI LIMITED, DELHI

ITA 6777/DEL/2025

AI Insights

The case involves the Income Tax Officer as the appellant and PCI Limited as the respondent, concerning a penalty of Rs. 99,56,300 levied under section 272A(2)(g) of the I.T. Act, 1961 for TDS defaults. The Tribunal noted that although the appeals were for different time periods, the issues were substantively similar to a previously adjudicated case (ITA 4164/Del/2025) for the same assessment year. The Tribunal referenced the earlier decision, which found that the assessee had a reasonable cause for the TDS defaults, thus not justifying the penalty. The Tribunal dismissed the Revenue's appeal, aligning with the precedent set in the earlier case.

• Duration Of Justice: 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2026
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Delhi
• Assessment Year: 2015-2016
• Appeal Filed On: 28-10-2025
• Other Referred Cases: ITA 4164/Del/2025
• Laws Referred To: I.T. Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Keywords: Reasonable cause; TDS
• Section: 273B

Judgement Text

"ITA No.6777/Del/2025 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER AND SHRISANJAY AWASTHI, ACCOUNTANT MEMBER आ.अ.सं/.I.T.A No.6777/Del/2025 िनधा रणवष /Assessment Year:2015-16 INCOME TAX OFFICER, Room No.303, Aaykar Bhawan, Laxmi Nagar, Delhi. बनाम Vs. PCI LIMITED, 11/5B, Pusa Road, Karol Bagh, New Delhi. PAN No.AAACP1565E अपीलाथ\u0014 Appellant \u0016\u0017यथ\u0014/Respondent Assessee by None Revenue by Shri Rajesh Kumar Dhanesta, Sr. DR सुनवाईक\bतारीख/ Date of hearing: 23.03.2026 उ\u000eोषणाक\bतारीख/Pronouncement on 25.03.2026 आदेश /O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER: 1. In this case the Ld. AR filed a letter dated 17.03.2026 indicating that the impugned issues were already adjudicated through order in ITA 4164/Del/2025 for AY 2015-16, vide order dated 29.10.2025. It has been submitted that this is a duplicate appeal filed by the Revenue since the same assessment year is involved. A copy of ITAT’s order has been placed on record. Printed from counselvise.com ITA No.6777/Del/2025 2 1.1 We have examined this issue and it is found that the impugned TDS defaults are for different time periods and it is for this reason that the two appeals are not identical. 1.2 On the last few dates of hearing, none have attended on behalf of the assessee, but it was decided to proceed ahead with the adjudication with the help of Ld. DR. This appeal pertains to a penalty of Rs.99,56,300/- levied u/s 272A(2)(g) of the I.T. Act, 1961. 2. It was pointed out by the Ld. DR that a decision on merits was already taken on similar set of facts and while the Ld. DR chose to rely on the orders of Ld. AO, he fairly left it to the Bench to decide the matter appropriately in light of ITAT’s order dated 29.10.2025 in assessee’s own case (supra). 3. We have considered the averments of Ld. DR and have gone through the records before us. It is seen that the operative portion of the ITAT’s order (supra), on similar set of facts for the same assessment year, is as under: - “5. After perusing the order of the Ld. CIT(A), we find that he has correctly invoked the provisions of section 273B. We are inclined to agree with the CIT(A) that the assessee had reasonable cause for the said failure and hence we do not find any reason to interfere with the same. We are therefore, of the considered view that in the factual matrix of the instant case, penalty u/s 272A(2)(g) is not justified. Accordingly, the appeal of the Revenue stands dismissed.” Printed from counselvise.com ITA No.6777/Del/2025 3 3.1 Considering the clear finding regarding applicability of section 273B of the I.T. Act, 1961 to the facts, we respectfully follow the same for the impugned order, which is upheld.We dismiss the Revenue’s appeal. 4. In the result, this appeal is dismissed. Order pronounced in the open court on 25.03.2026 Sd/- Sd/- (CHALLA NAGENDRA PRASAD) (SANJAY AWASTHI) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 25.03.2026 *Kavita Arora, Sr. P.S. Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "