Ritu Tuli (through legal heir Sh. Sandeep Tuli) Vs DCIT (ITAT Delhi)
In the case of Ritu Tuli (through legal heir Sh. Sandeep Tuli) Vs DCIT, the Income Tax Appellate Tribunal (ITAT), Delhi, allowed the assessee’s appeal against penalty levied under Section 271AAC(1) of the Income Tax Act for Assessment Year 2017-18.
The penalty of Rs.8,14,987 was imposed in relation to additions of Rs.81,49,875 made under Sections 68/69 read with Section 115BBE in an assessment completed on 31.12.2022. The Commissioner of Income Tax (Appeals) had upheld the penalty order.
During the hearing before the Tribunal, no one appeared on behalf of the assessee, and the matter proceeded ex parte. The Departmental Representative argued that the penalty had been correctly levied and sustained by the lower authorities.
However, the Tribunal noted that the assessee’s quantum appeal in ITA No.2016/Del/2023 had already been allowed by a coordinate bench through order dated 31.12.2024. In that order, the Tribunal had quashed the Section 153C assessment itself.
Considering that the assessment forming the basis of the penalty no longer survived, the Tribunal held that the penalty under Section 271AAC(1) had no basis to continue. Accordingly, the Tribunal directed deletion of the penalty and allowed the assessee’s appeal.
