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

ITA 5189/DEL/2025

AI Insights

The case involves The Hisar Leading Bank Co-op Non-Agri Thrift & Credit Society, the appellant, contesting a penalty imposed by the Income Tax Officer (ITO), Ward 1, Hisar, the respondent. The penalty was levied following a reassessment for the assessment year 2015-16 under section 271(1)(c) of the Income Tax Act. However, the reassessment was later quashed by the Delhi Bench of the Tribunal in a separate appeal (ITA No. 5087/Del/2025), which ruled that the notice for reassessment was time-barred. Consequently, the basis for the penalty no longer existed, leading to the allowance of the assessee's appeal and the deletion of the penalty.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 838263 (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: 2015-2016
• Appeal Filed On: 26-08-2025
• Other Referred Cases: Rajeev Bansal, Honeywell Exim Private Limited
• 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 No. 5189/Del/2025 (AY 2015-16) 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 : This appeal by the Assessee is arising out of the order of the Ld. Ld. CIT(A)/NFAC, Delhi confirming the levy of penalty made by the AO u/s. 271(1)(c) amounting to Rs. 1,04,74,838/- for the relevant assessment year 2015-16. 2. At the outset, ld. Counsel for the assessee stated that the aforesaid penalty which has been made under section 271(1)(c) of the Act is arising out of the assessment framed and that assessment has been quashed by the Delhi Bench of the Tribunal in ITA No. 5087/Del/2025 (AY 2015-16) vide order dated 28.1.2026 wherein, the reassessment proceedings initiated for the assessment year was quashed by observing in para 7 as under:- Printed from counselvise.com 2 “..7. 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 co-ordinate Bench decision in Honeywell Exim Private Limited (supra), we are of the opinion that the notice issued u/s. 148 of the Act dated 27.7.2022 is barred by the limitation. Consequently, the assessment order as well as the impugned order are hereby quashed. 8. In the result, appeal of the assessee is allowed.” 3. Once the reassessment is quashed and reopening is held bad in law initiated u/s. 147/148 of the Act, the consequent penalty as levied by the AO does not survive. Hence, the penalty involved in the instant appeal of the assessee is hereby deleted and accordingly, the grounds raised in this appeal are allowed. 4. In the result, the assessee’s appeal is allowed in the above terms. 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 "