SCHENKER INDIA PRIVATE LIMITED (SUCCESSOR OF SCHENKER INDIA PRIVATE LIMITED (PAN-AAACS8948J)),HARYANA V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 22(2), CR BUILDING, NEW DELHI

ITA 2818/DEL/2025

AI Insights

The case involves Schenker India Private Limited appealing against penalty orders imposed by the Income Tax Department, which were based on earlier assessment orders. These penalties were contested on the grounds that the entity was non-existent at the time the penalties were imposed. The tribunal heard arguments from both sides and considered the procedural history, including the setting aside of the quantum addition by the AO, which effectively nullified the basis for the penalties. The tribunal's decision to quash the penalties was influenced by the fact that the underlying assessment orders had been set aside, rendering the penalties void. The tribunal also indicated that new penalties could be considered following any new assessments.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 790228 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 28-04-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Assessee Lawyers: K.M. GUPTA; HARMEET SINGH
• Keywords: Set aside

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : B : NEW DELHI BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITAs No.2817 & 2818/Del/2025 Assessment Years : 2016-17 & 2017-18 Schenker India Private Limited, 12th Floor, Tower-C, Building No.8, Phase-II, DLF Cyber City, Gurugram. Haryana – 122002. PAN: AAACB0697B Vs. DCIT, Circle-22(2), New Delhi. (Appellant) (Respondent) Assessee by : Shri K.M. Gupta, Advocate & Shri Harmeet Singh, CA Revenue by : Shri Rajesh Kumar Dhanesta, Sr.DR Date of Hearing : 12.11.2025 Date of Pronouncement : 26.11.2025 ORDER PER ANUBHAV SHARMA, JM: These are appeals preferred by the Assessee against the orders dated 26.02.2025 of the Commissioner of Income-tax (Appeals), NFAC, Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in appeals No.NFAC/2015-16/10194846 and NFAC/2016-17/10194850 arising out Printed from counselvise.com ITAs No.2817 & 2818/Del/2025 2 of the appeals before it against the orders dated 29.09.2022 passed u/s 271B and 270A of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’), respectively, by the IT Deptt., Circle-22(2), Delhi (hereinafter referred to as the Ld. AO). 2. On hearing both the sides, we find that amongst other grounds on the legality of the proceedings being conducted in case of a non-existing entity, it was submitted before us that the quantum proceedings have been set aside to the AO on the basis that assessee was also ex parte in the assessment proceedings. 3. In the light of the aforesaid facts and circumstances, as the quantum addition has been set aside to ld. AO for a fresh order, the present proceedings have arisen only out of assessment orders which no more exist, the substratum of the penalty orders gets demolished and thus are liable to be quashed. The appeals are accordingly allowed. However, this will not be embargo on fresh penalty proceedings, if initiated in consequence to the fresh assessment orders. Order pronounced in the open court on 26.11.2025. Sd/- Sd/- (S. RIFAUR RAHMAN) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 26th November, 2025. dk Printed from counselvise.com ITAs No.2817 & 2818/Del/2025 3 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi Printed from counselvise.com "