ACIT Vs Saurabh Gupta (ITAT Agra)
The case before the Income Tax Appellate Tribunal Agra involved an appeal by the revenue against the deletion of a penalty imposed under Section 271E of the Income Tax Act, 1961 for Assessment Year 2017–18. The penalty of ₹91,10,400 had been levied for alleged violation of Section 269T, based on an addition made under Section 69A read with Section 115BBE on account of unexplained money. This addition arose from documents seized during a search conducted on 26.09.2017 in a related group case.
The assessee had originally filed a return declaring income of ₹23,99,800, which was processed under Section 143(1). Subsequently, during assessment proceedings under Sections 143(3) read with 153C, the Assessing Officer made the addition of ₹91,10,400 and initiated separate penalty proceedings, resulting in imposition of penalty under Section 271E.
The assessee challenged the penalty before the Commissioner of Income Tax (Appeals), who deleted it on the ground that the underlying quantum addition had already been deleted by an earlier appellate order dated 30.11.2023. The revenue contested this deletion, arguing that penalty proceedings are independent of quantum additions and that the deletion of addition was based on erroneous findings. It was also contended that seized documents and statutory presumptions under Section 292C supported the penalty.
