Section 271(1)(c) Penalty Deleted as Underlying Assessment Order Was Set Aside

ITO Vs K.P. Exim INC (ITAT Chandigarh)

The appeal before the Income Tax Appellate Tribunal, Chandigarh Bench was filed by the Revenue challenging the order of the Commissioner of Income Tax (Appeals) dated 25.02.2025 for Assessment Year 2014–15, whereby a penalty of ₹1,25,53,423 was deleted. The Revenue’s grievance was that the CIT(A) had deleted the penalty without examining the merits of the case.

The Tribunal examined the record and noted that the Assessing Officer had earlier passed an ex-parte assessment order under Section 144 read with Section 1

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