SURYA JYOTI SOFTWARE PVT LTD,DELHI V. ITO WARD-24(1), DELHI

ITA 2219/DEL/2025

AI Insights

The case involves Surya Jyoti Software Pvt. Ltd., which appealed against the penalty imposed by the Income Tax Officer under Section 271(1)(c) of the Income Tax Act, 1961, for the assessment year 2009-10. The penalty was based on an addition made during the assessment, which was later contested and led to a revision of the return. The tribunal's decision to allow the appeal was based on the fact that the initial addition, which was the basis for the penalty, had been deleted in a prior ITAT decision. The tribunal set aside both the penalty and the appellate order, highlighting the absence of any concealment of income by the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 822636 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 03-04-2025
• Other Referred Cases: Surya Jyoti Software Pvt. Ltd. vs. ITO
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AJAY KUMAR ARORA
• Assessee Lawyers: Y K GUPTA
• Keywords: Set aside; Principle of natural justice
• Section: 143(3); 271(1)(c)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘A’ NEW DELHI BEFORE SHRI M BALAGANESH, ACCOUNTANT MEMBER AND SHRI VIMAL KUMAR, JUDICIAL MEMBER ITA No. 2219/Del/2025 Assessment Year: 2009-10 Surya Jyoti Software Pvt. Ltd., 206, Hans Bhawan, 1 Bahadur Shah Zafar Marg, New Delhi – 1100 02 Vs. Income Tax Officer, Ward 24(1), Delhi PAN :AALCS5682G (Appellant) (Respondent) ORDER PER VIMAL KUMAR, JUDICIAL MEMBER: The appeal filed by the assessee is against order dated 29.03.2025 of Learned Commissioner of Income Tax (Appeals)/National Faceless Assessment Centre (NFAC), Delhi (hereinafter referred to as “Ld. AO\") under Section 250 of the Income Tax Act, 1961 (hereinafter referred as “the Act”) arising out of penalty order dated 14.-01.2022 for assessment year 2009-10 under Section 271(1)(c) of the Act passed by the Assessing Officer/National Faceless Assessment Centre (NFAC), Delhi (hereinafter referred as ‘Ld. AO\"). Assessee by Shri Y K Gupta, CA Department by Shri Ajay Kumar Arora, Sr. DR Date of hearing 08.12.2025 Date of pronouncement 23.12.2025 Printed from counselvise.com 2 ITA No. 2219/Del/2025 2. Brief facts of the case are that the assessee filed its return of income on 17-08-2009 declaring a loss of Rs.1,93,992/- for assessment year 2009-10. The return was later on revised on 14.09.2010 at a loss of Rs.2,46,797/-. The return was subjected to scrutiny. On completion of proceedings, assessment order dated 06.12.2017 under Section 263, 147, 143(3) of the Act was passed. In pursuance to assessment order dated 06.12.2017, Ld. AO passed penalty order dated 14.01.2022 under Section 271(1)(c) of the Act. 3. Against penalty order dated 14.01.2022, the appellant/assessee filed appeal before Ld. CIT(A) which was dismissed vide order dated 29.03.2025. 4. Being aggrieved, the appellant/applicant filed present appeal with following grounds of appeal: 1. The Ld. CIT(A)/NFAC has erred in law and facts of the case in passing order u/s 250 of Income Tax confirming the penalty u/s 271(1)(C) of Income Tax Act without considering the representation submitted by appellant on 21.12.2024 vide acknowledge no 764306461211224 and on 11.02.2025 vide acknowledge no 865929221110225 and Appeal order of Hon'ble ITAT vide its order dated 12.12.2024 order no ITA No. 4740/Del/2019. 2. The Ld. Commissioner of income tax appeal / NFAC has erred in law, facts, equity and natural justice and therefore the order passed by Ld. AO is to be quashed. 3. There is no concealment of income as assessee company had received back the loan granted to M/s Shalini Holdings Limited and the addition made has been deleted by Hon'ble ITAT vide its order dated 12.12.2024 order no ITA No. 4740/Del/2019. 4. The Ld. CIT (A)/ NFAC has erred in mentioning on page 3 of its order in point no 5 :- during the appellate proceedings, notice u/s 250 of the act was issued to the appellant on 01.12.2023 & 28.02.2025. In response to the above notice, the appellant has made no submissions. The appellant made submissions through ITBA Portal. Printed from counselvise.com 3 ITA No. 2219/Del/2025 5. The penalty-imposed u/s 271(1)(c) may kindly be deleted as the additions made have been deleted by Hon'ble ITAT vide its order dated 12.12.2024 order no ITA No. 4740/Del/2019. 5. Learned Authorized Representative for the appellant/assessee submitted that Ld. CIT(A) failed to appreciate that there is no concealment of income as the assessee had received back the loan granted to M/s. Shalini Holdings Ltd. and the addition was deleted by Hon’ble Income Tax Appellate Tribunal vide order dated 12.12.2024 in ITA No.4740/Del/2019 pages 51-57 of paper books. 6. The Learned Departmental Representative relied on impugned order. 7. From examination of record in light of aforesaid contentions, it is crystal clear that the addition made by the Ld. AO through order dated 06.12.2017 was deleted by ITAT vide order dated 12.12.2024 in ITA No.4740/Del/2019 titled as “Surya Jyoti Software Pvt. Ltd. vs. ITO” pages 51-57 of paper books. Therefore, the consequential penalty order dated 14.01.2022 of Ld. AO and appellate order dated 29.03.2025 of Ld. CIT(A) are set aside. Ground of appeal nos. 1 to 5 are allowed. 8. In the result, the appeal of the assessee is allowed Order pronounced in the open court on 23rd December, 2025. Sd/- Sd/- ( M BALAGANESH ) ACCOUNTANT MEMBER (VIMAL KUMAR) JUDICIAL MEMBER Dated: 23rd December, 2025. Mohan Lal Printed from counselvise.com 4 ITA No. 2219/Del/2025 Copy forwarded to: 1. Applicant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Printed from counselvise.com "