Anil Kumar Paik Vs ACIT (ITAT Kolkata)
Kolkata ITAT Deletes Penalty under Section 271(1)(c) After Quantum Additions Were Fully Deleted
The Kolkata ITAT deleted the penalty of ₹2.61 crore levied under section 271(1)(c) after observing that the very foundation for the penalty had ceased to exist. The Tribunal noted that the original assessment had resulted in substantial additions, which were subsequently challenged before the Tribunal. While an earlier order had restored one issue relating to property valuation to the Assessing Officer, the Tribunal, in a subsequent quantum appeal, deleted the surviving addition as well, leaving no addition outstanding against the assessee. Since the penalty proceedings were entirely based on additions that no longer survived, the Tribunal held that the penalty had no legs to stand on and was liable to be deleted. Accordingly, the penalty under section 271(1)(c) was quashed in its entirety.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 08.01.2026 for the AY 2016-17. The penalty was levied by the Id. AO u/s 271(1)(c) , vide order dated 28.03.2024 for A.Y. 2016-17.
