Penalty Collapses Automatically Once Quantum Addition Is Deleted

Surya Jyoti Software Pvt. Ltd. Vs ITO (ITAT Delhi) Penalty Is Consequential:- When Quantum Falls, Penalty Can’t Stand: 271(1)(c) Penalty Automatically Collapses Delhi ITAT ‘A’ Bench in Surya Jyoti Software Pvt Ltd vs ITO, Ward 24(1), Delhi (ITA No.2219/Del/2025, AY 2009-10, order dated 23-12-2025) deleted penalty levied u/s 271(1)(c), holding that once the quantum addition itself is deleted, the consequential penalty cannot survive. Assessee-company had filed return declaring loss. Assessment was reopened and an addition was made in respect of loan transaction with M/s Shalini Holdings L...