PARVEEN TAYAL,FARIDABAD HARYANA V. DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 2, FARIDABAD HARYANA

ITA 2073/DEL/2025

AI Insights

The case involves an appeal by Parveen Tayal against the order of the CIT(A)-3, Gurgaon, which upheld the penalty imposed by the Assessing Officer for alleged concealment of income or furnishing of inaccurate particulars of income for the Assessment Year 2016-17. The Tribunal noted that the show-cause notice issued under section 271(1)(c) read with section 274 of the Income Tax Act did not specify the nature of the offense (concealment or inaccurate particulars), which is a procedural requirement. Citing precedents such as PCIT Vs. Sahara India Life Insurance Co. Ltd. and PCIT Vs. Gopal Kumar Goyal, the Tribunal concluded that this oversight vitiated the penalty proceedings and thus decided in favor of the assessee, Parveen Tayal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 786892 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2016-2017
• Appeal Filed On: 29-03-2025
• Other Referred Cases: PCIT Vs. Sahara India Life Insurance Co. Ltd. (2021) 432 ITR 84 (Del.), PCIT Vs. Gopal Kumar Goyal (2023) 153 taxmann.com 534 (Del.)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANISH GUPTA
• Assessee Lawyers: DEEPESH GARG
• Section: 271(1)(c)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member & Sh. Manish Agarwal, Accountant Member ITA No. 2073/Del/2025 : Asstt. Year: 2016-17 Parveen Tayal, H. No. 246/G, 1st Floor, Sector-10, DLF, Faridabad, Haryana-121006 Vs DCIT, Central Circle-2, Faridabad, Haryana-121001 (APPELLANT) (RESPONDENT) PAN No. AGRPT5617P Assessee by : Sh. Deepesh Garg, Adv. Revenue by : Sh. Manish Gupta, Sr. DR Date of Hearing: 09.09.2025 Date of Pronouncement: 20.11.2025 ORDER Per Satbeer Singh Godara, Judicial Member: This assessee’s appeal for Assessment Year 2016-17, arises against the CIT(A)-3, Gurgaon’s order dated 30.01.2025, in case No. 10487, 11534/2012-13 & 2015-16, in proceedings u/s 271(1)(c) of the Income Tax Act, 1961 (in short “the Act”). 2. Heard both the parties at length. Case file perused. 3. It emerges at the outset during the course of hearing that both the learned lower authorities have held the assessee to have concealed the particulars of income or furnished inaccurate particulars of such income to levy section 271(1)(c) Printed from counselvise.com ITA No. 2073/Del/2025 Parveen Tayal 2 penalty in question amounting to Rs.9,28,330/- vide Assessing Officer’s order dated 24.04.2021 which stands upheld in the CIT(A)’s detailed discussion. 4. It emerges during the course of hearing that the learned Assessing Officer had issued his section 271(1)(c) r.w.s. 274 show-cause notice to the assessee proposing to levy the impugned penalty without even specifying as to whether it was an instance of concealment or furnishing of inaccurate particulars of taxable income; as the case may be. 5. The Revenue could hardly dispute that various landmark judicial precedents in PCIT Vs. Sahara India Life Insurance Co. Ltd. (2021) 432 ITR 84 (Del.) and PCIT Vs. Gopal Kumar Goyal (2023) 153 taxmann.com 534 (Del.) has settled the issue in the assessee’s favour and against the department that such a failure on the learned Assessing authorities part indeed vitiated the penalty proceedings itself. We accordingly find merit in the assessee’s vehement contentions to delete the impugned section 271(1)(c) penalty of Rs.9,28,330/- imposed by both the learned lower authorities. Ordered accordingly. 6. All other pleadings in merit in the assessee’s instant appeal stand rendered academic. Printed from counselvise.com ITA No. 2073/Del/2025 Parveen Tayal 3 7. This assessee’s appeal is allowed. Order Pronounced in the Open Court on 20/11/2025. Sd/- Sd/- (Manish Agarwal) (Satbeer Singh Godara) Accountant Member Judicial Member Dated: 20/11/2025 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR Printed from counselvise.com "