ITO WARD 16(1), DELHI, NEW DELHI V. M.A PROJECTS PRIVATE LTD. , NEW DELHI

MA 378/DEL/2023

AI Insights

The case revolves around a dispute concerning the penalty levied under section 271(1)(c) of the Income Tax Act, 1961, against M/s. M.A. Projects Pvt. Ltd for the assessment year 2009-10. The revenue sought to recall a previous Tribunal order that had deleted the penalty, arguing that subsequent notices had specified the charges, unlike the initial notice. However, the Tribunal found that the initial notice was defective as it did not specify the charges, leading to the dismissal of the revenue's application based on the precedent set by the Hon'ble Bombay High Court in Md. Farhan A. Sheikh Vs. ACIT.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 824563 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 3 month(s) 11 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 30-12-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2009-2010
• Appeal Filed On: 19-09-2023
• Other Referred Cases: Md. Farhan A. Sheikh Vs. ACIT in Income Tax Appeal No. 51 and 27 of 2012
• Laws Referred To: Section 271(1)(c) of the Act, Section 274 read with Section 271(1)(c) of the Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIJIT KUMAR GAUTAM
• Assessee Lawyers: S.K. GUPTA
• Keywords: Initiation of penalty proceedings
• Section: 271(1)(c)

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “E”: NEW DELHI BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER MA 378/Del/2023 (ITA No. 1636/Del/2022) (Assessment Year: 2009-10) ITO, Ward-16(1), Delhi Vs. M/s. M.A. Projects Pvt. Ltd, BA-17A, DDA Flats, Ashok Vihar, Phase-I, New Delhi (Appellant) (Respondent) PAN: AAECM2372E Assessee by : Shri S. K. Gupta, CA Revenue by: Shri Abhijit Kumar Gautam, Sr. DR Date of Hearing 10/10/2025 Date of pronouncement 30/12/2025 O R D E R PER M. BALAGANESH, A. M.: 1. By virtue of this miscellaneous application the revenue seeks to recall the order passed by this Tribunal in ITA No. 1631/Del/2022 for AY 2009-10 dated 12.04.2023 wherein the penalty levied u/s 271(1)(c) of the Act was directed to be deleted on the basis of non-mentioning of specific charges of offence committed by the assessee in the show cause notice u/s 274 read with Section 271(1)(c) of the Act thereby making the notice defective. The revenue had pointed out that in the subsequent notices issued on 22.05.2019 and 02.07.2019, specific charges of offence has been duly mentioned by the ld AO. What is relevant is to be seen is the first penalty notice which only gave right to initiation of penalty proceedings for the ld AO. In the said initial penalty show cause notice, admittedly there was no specific charge of offence mentioned. Hence, Printed from counselvise.com MA 378/Del/2023 M/s. M.A. Projects Pvt. Ltd Page | 2 the Tribunal had rightly cancelled the levy of penalty by placing reliance on the full bench decision of the Hon'ble Bombay High Court in the case of Md. Farhan A. Sheikh Vs. ACIT in Income Tax Appeal No. 51 and 27 of 2012 dated 11.03.2021. Hence, the miscellaneous application of the revenue is hereby dismissed as devoid of merit. 2. In the result, the miscellaneous application preferred by the revenue is dismissed. Order pronounced in the open court on 30/12/2025. -Sd/- -Sd/- (YOGESH KUMAR U.S.) (M. BALAGANESH) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 30/12/2025 A K Keot Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "