Section 271(1)(c) Penalty Deleted for Cash Deposits Linked to Earlier Withdrawals

Naresh Singh Contractors Vs ITO (ITAT Agra)

ITAT Refuses 2,799-Day Delay Condonation for Lack of Sufficient Cause; No Penalty as Interest in Form 26AS Was Already Taxed: ITAT; No Penalty Under Section 44AD as Income Exceeded Presumptive Rate: ITAT; ITAT Deletes Penalty as Revenue Failed to Disprove Cash Deposit Source; ITAT Rejects Delay Condonation Despite Non-Service Claim.

The Income Tax Appellate Tribunal (ITAT), Agra Bench, adjudicated two appeals relating to Assessment Year 2014-15 arising from the order of the Commissioner of Income Tax (Appeals)-2, New Delhi, dated 30.03.2018. One appeal concerned the condonation of delay in filing a quantum appeal, while the other involved the levy of penalty under Section 271(1)(c) of the Income-tax Act, 1961.

Appeal relating to delay in filing (ITA No. 85/AGR/2026)

The assessee’s appeal against the quantum addition was filed with a delay of 2,799 days. The assessee contended that the appellate order dated 30.03.2018 had neither been served upon it nor uploaded on the Income Tax Portal. According to the assessee, an application seeking a copy of the order was filed on 25.04.2019 along with the prescribed challan. It was further submitted that despite repeated requests and visits to the office of the CIT(A), the order could not be obtained because the file had allegedly been misplaced. The assessee stated that the appellate order was ultimately uploaded on the Income Tax Portal only in November 2025, following which the appeal was filed before the Tribunal.