NEETU GUPTA,PUNJAB V. THE INCOME TAX OFFICER, WARD-1,KAPURTHALA, PUNJAB

ITA 4496/DEL/2025

AI Insights

The case involves Neetu Gupta, who appealed against a penalty of Rs. 1,75,615 imposed by the Income Tax Officer, Kapurthala, under section 271(1)(c) of the Income Tax Act, 1961. The penalty was confirmed by the CIT(A) on the grounds that the source of cash explained by the assessee was inadequate. Neetu Gupta challenged this decision at the ITAT, which found procedural flaws in the imposition of the penalty, particularly the lack of a proper hearing and the ongoing status of the quantum appeal. The ITAT decided to remand the case back to the CIT(A) for a comprehensive review alongside the pending quantum appeal.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 825345 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 21-07-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: SABYASACHI ROY
• Keywords: Set aside; Opportunity of being heard
• Section: 271(1)(c)

Judgement Text

"ITA No.4496/Del/2025 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”NEW DELHI BEFORE SHRI MAHAVIR SINGH, HON’BLE VICE PRESIDENT AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER आ.अ.सं/.I.T.A No.4496/Del/2025 िनधा रणवष /Assessment Year:2011-12 NEETU GUPTA, House No.10, SSS-NIRE Campus Type-IV, Wadala, Kalan Kapurthala, Punjab. PAN No.AQRPG5348Q बनाम Vs. THE INCOME TAX OFFICER, Ward 1, Kapurthala, Punjab. अपीलाथ\u0014 Appellant \u0016\u0017यथ\u0014/Respondent Assessee by None Revenue by Shri Sabyasachi Roy, Sr. DR सुनवाईक\bतारीख/ Date of hearing: 16.12.2025 उ\u000eोषणाक\bतारीख/Pronouncement on 02.01.2026 आदेश /O R D E R PER SANJAY AWASTHI, ACCOUNTANT MEMBER: 1. The present appeal arises from order dated 02.06.2025, passed u/s 250 of the Income Tax Act, 1961 (hereafter as “the Act”) by the Ld. CIT(A)-NFAC, Delhi. In this case, the Ld. AO has levied a penalty u/s 271(1)(c) of the Act to the extent of Rs.1,75,615/-. It is seen that the penalty proceedings before the Ld. AO were conducted in an ex parte manner. It is further seen that before the Ld. CIT(A) also the averments of the assessee have been negated and after discussing a number of authorities the Ld. CIT(A) has confirmed the said penalty on the ground Printed from counselvise.com ITA No.4496/Del/2025 2 that the source of cash, as explained by the assessee, was not held to be adequate. The penalty was thereby confirmed. 1.1 Aggrieved with this action, the assessee has approached the ITAT with as many as five grounds of appeal, which all challenge the penalty imposed. 2. On the last date of hearing none attended on behalf of the assessee, but it was decided to proceed ahead with the adjudication with the help of Ld. DR. Before us, the Ld. DR stated that the assessee was earning meagre amounts as a self-employed person. It was pointed out that this penalty has been levied even when the quantum appeal is still pending before the Ld. CIT(A). The Ld. DR relied on the order of the authorities below. 3. We have carefully considered the submissions of Ld. DR and have gone through the records before us. It is readily observable that the impugned penalty has been levied without affording proper opportunity of being heard. Furthermore, once the quantum addition is still pending before the Ld. CIT(A) then there is no reason why the present penalty should survive for adjudication. We accordingly set aside the impugned order and remand the same back to the file of the Ld. CIT(A) for consideration of the penalty along with the quantum matter. Needless to say, the penalty would be under remission till such time that the quantum matter is decided. Printed from counselvise.com ITA No.4496/Del/2025 3 4. In the result, the appeal is allowed for statistical purpose. Order pronounced in the open court on 02.01.2026 Sd/- Sd/- (MAHAVIR SINGH) (SANJAY AWASTHI) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 02.01.2026 *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 "