THE HISAR LEADING BANK CO-OP NON-AGRI THRIFT & CREDIT SOCIETY,HISAR V. INCOME-TAX OFFICER, WARD-1, HISAR, HISAR

ITA 5186/DEL/2025

AI Insights

The case involves The Hisar Leading Bank Co-op Non-Agri Thrift & Credit Society, which appealed against the penalties imposed by the Income Tax Officer, Ward 1, Hisar. The penalties were levied under sections 271(1)(b), 271(1)(c), and 271F of the Income Tax Act, amounting to Rs. 20,000, Rs. 2,61,07,246, and Rs. 5,000 respectively, for the assessment year 2014-15. The primary contention in the appeals was the validity of these penalties following the quashing of the reassessment proceedings by the Delhi Bench of the Tribunal in a separate but related case (ITA No. 5053/Del/2025). The Tribunal found that since the reassessment was quashed, the penalties did not survive and thus were deleted.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 839294 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2014-2015
• Appeal Filed On: 26-08-2025
• Other Referred Cases: Rajeev Bansal, Shivani Tayal
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANKUSH KALRA
• Assessee Lawyers: PREM RAJPAL
• Keywords: Reassessment proceedings
• Section: 148; 271(1)(c)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’, NEW DELHI Before Shri Mahavir Singh, Vice President & Sh. M. Balaganesh, Accountant Member ITA Nos. 5186, 5187, 5188/Del/2025 (AY - 2014-15) The Hisar Leading Bank Co-op Non-Agri Thrift & Credit Society, Shop No. 52-53, Saini School, Mohalla Saniyan, Hisar -125001 (Haryana) (PAN: AADAT3893L) Vs ITO, Ward 1, Hisar Aayakar Bhawan, Sector-14, Hisar, Haryana (APPELLANT) (RESPONDENT) Assessee by : Sh. Prem Rajpal, Adv. Revenue by : Ms. Ankush Kalra, Sr. DR. Date of Hearing: 17.02.2026 Date of Pronouncement: 20.02.2026 ORDER Per Mahavir Singh, VP : These three appeals by the Assessee are arising out of the respective orders of the Ld. Ld. CIT(A)/NFAC, Delhi confirming the levy of penalty made by the AO u/s. 271(1)(b) amounting to Rs. 20,000/-; levy of penalty made u/s. 271(1)(c) amounting to Rs. 2,61,07,246/- and levy of penalty made u/s. 271F amounting to Rs. 5,000/- for the relevant assessment year 2014-15. 2. At the outset, ld. Counsel for the assessee stated that the aforesaid three penalties which have been made under sections 271(1)(b); 271(1)(c) and 271F respectively are arising out of the assessment framed and that assessment has been quashed by the Delhi Bench of the Tribunal in ITA No. 5053/Del/2025 (AY 2014-15) vide order dated Printed from counselvise.com 2 7.1.2026 wherein, the reassessment proceedings initiated were quashed by observing in para 12 as under:- “..12. Considering the above facts and circumstances and also applying the ratio laid down by the Hon’ble Supreme Court in the case of Rajeev Bansal (supra) and respectfully following the coordinate Bench decision in Shivani Tayal (Supra), we are of the opinion that the notice issued u/s. 148 of the Act dated 27.7.2022 is barred by the period specified u/s. 149 of the Act. Consequently, the re-assessment proceedings initiated thereupon is hereby quashed.” 3. Once the reassessment is quashed and reopening is held bad in law initiated u/s. 147/148 of the Act, the consequent penalties as levied by the AO does not survive. Hence, all these penalties involved in the instant appeals of the assessee are hereby deleted and accordingly, the grounds raised in all the three appeals are allowed. 4. To sum up, these assessee’s three appeals being ITA Nos. 5186 to 5188/Del/2025 are allowed in the above terms. A copy of this common order be placed in the respective case files. Order Pronounced in the Open Court on 20/02/2026. Sd/- Sd/- (M. Balaganesh) (Mahavir Singh) Accountant Member Vice President Dated: 20/02/2026 *SR BHATNAGGAR* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR Printed from counselvise.com "