JCIT(OSD), CIRCLE-10(1), DELHI V. M/S IGT SOLUTION PRIVATE LIMITED, DELHI

ITA 1252/DEL/2025

AI Insights

The case involves an appeal by the Revenue against M/s IGT Solution Pvt Ltd concerning a penalty levied under section 270A of the Income-tax Act, 1961 for the assessment year 2017-18. The penalty was initially imposed following a quantum addition in the assessee's income. However, the quantum addition was later deleted by a co-ordinate bench of the ITAT in a separate appeal. Consequently, the foundation for the penalty was removed, leading to the dismissal of the Revenue's appeal and the direction to delete the penalty.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785032 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-11-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2017-2018
• Appeal Filed On: 28-02-2025
• Other Referred Cases: ITA No. 2126/DEL/2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANKUSH KALRA
• Assessee Lawyers: PRIYA TANDON

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘E’ BENCH, NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 1252/DEL/2025 [A.Y. 2017-18] The J.C.I.T [OSD] Vs. M/s IGT Solution Pvt Ltd Circle – 10(1) Unit No. 1, Ground Floor New Delhi A Wing, Business @ Mantri Survey No. 197/2 to 4 to 7B Dukirklines, SO Pune City Pune, Maharashtra PAN – AAACI 5079 A (Applicant) (Respondent) Assessee By : Ms. Priya Tandon, Adv Department By : Ms. Ankush Kalra, Sr. DR Date of Hearing : 11.11.2025 Date of Pronouncement : 11.11.2025 ORDER PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:- This appeal by the Revenue is preferred against the order of the NFAC, Delhi dated 28.02.2025 pertaining to A.Y. 2017-18 against the penalty levied u/s 270A of the Income-tax Act, 1961 [the Act, for short]. Printed from counselvise.com ITA No. 1252/DEL/2025 [A.Y. 2017-18] JCIT Vs. M/s IGT Solution Limited Page 2 of 4 2. At the very outset, the ld. counsel for the assessee submitted that the quantum addition made in this case for the instant year, has been deleted by the co-ordinate bench of the ITAT in ITA No. 2126/DEL/2025 for A.Y 2017-18 vide order dated 30.10.2025. Therefore, the ld. counsel for the assessee prayed that the penalty may be deleted. 3. Per contra, the ld. DR fairly conceded to the same. 4. We have heard the rival submissions and have perused the relevant material on record. We find that this issue in quantum appeal has been decided in favour of the assessee and against the Revenue by the decision of the co-ordinate Bench [supra]. In view of the above facts, the legal dictum of “Sublato Fundamento Cadit Opus”, applies meaning thereby, that in case the foundation is removed, the super structure falls. Since the foundation [quantum addition] has been removed, the super structure i.e. penalty must fall. Accordingly, we find that once the quantum has been deleted, penalty levied u/s 270A of the Act has no legs to stand. Accordingly, we direct the AO to delete the penalty. 6. In the result, appeal of the Revenue in ITA No. 1252/DEL/2025 is dismissed. Printed from counselvise.com ITA No. 1252/DEL/2025 [A.Y. 2017-18] JCIT Vs. M/s IGT Solution Limited Page 3 of 4 The order is pronounced in the open court on 11.11.2025. Sd/- Sd/- [CHALLA NAGENDRA PRASAD] [NAVEEN CHANDRA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 11th NOVEMBER, 2025. VL/ Copy forwarded to: 1. Assessee 2. Respondent 3. CIT 4. CIT(A) Asst. Registrar, 5. DR ITAT, New Delhi Printed from counselvise.com ITA No. 1252/DEL/2025 [A.Y. 2017-18] JCIT Vs. M/s IGT Solution Limited Page 4 of 4 Sl No. PARTICULARS DATES 1. Date of dictation of Tribunal Order 2. Date on which the typed draft order is placed before the Dictating Member 3. Date on which the typed draft order is placed before the other Member [in case of DB] 4. Date on which the approved draft order comes to the Sr. P.S./P.S. 5. Date on which the fair Order is placed before the Dictating Member for sign 6. Date on which the fair order is placed before the other Member for sign [in case of DB] 7. Date on which the Order comes back to the Sr. P.S./P.S for uploading on ITAT website 8. Date of uploading, inf not, reason for not uploading 9. Date on which the file goes to the Bench Clerk 10. Date on which the file goes for Xerox 11. Date on which the file goes for endorsement 12. The date on which the file goes to the Superintendent for checking 13. Date on which the file goes to the Assistant Registrar for signature on the order 14. Date on which the file goes to the dispatch section for dispatch the Tribunal order 15. Date of Dispatch of the Order 16. Date on which the file goes to the Record Room after dispatch the order Printed from counselvise.com "