IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’: NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.6502/Del/2025 (ASSESSMENT YEAR 2011-12)

Late Sh. Gautam Rythvyc Deputy Commissioner of Chadha (Through Legal Heir Income Tax, Smt. Ratna Chadha), 505 Salcon Vs. Circle-28(1), Aurum, Jasola District Centre-4, New Delhi.

New Delhi-110025.

PAN-AADPC5798A (Appellant) (Respondent)

Assessee by Shri Ashwani Kumar, CA &

Shri Ankur Agarwal, CA Department by Shri Ajay Kumar Arora, Sr. DR Date of Hearing 16.02.2026 Date of Pronouncement 06.03.2026

O R D E R

PER MANISH AGARWAL, AM:

This appeal is filed by the Assessee against the order of ld. Addl./Joint Commissioner of Income Tax (Appeals)-1, Vadodara [‘Ld. CIT(A)’ in short], in Appeal No. CIT(A), Delhi-10/10005/2017-18 dated 19.09.2025 passed u/s 250 of the Income Tax Act, 1961 (‘the Act’ in short) against the order passed u/s 271(1)(c)

dated 29.03.2017 for Assessment Year 2011-12.

2. Brief facts of the case are that assessee filed return of income on 16.08.2011 declaring total income of Rs.9,29,17,880/-. The case was selected for scrutiny and the assessment was completed at an income of Rs. 9,73,61,297/- vide order dated

19.03.2014 passed u/s 143(3) of the Act. Against the said order, assessee filed an appeal before the Ld. CIT(A) who vide its order dated 21.09.2015 in Appeal No. 253/2014-15 partly allowed the appeal filed by assessee, and confirmed the additions to the extent of Rs. 34,62,090/-. Thereafter, the Assessing Officer proceeded with the pending penalty proceedings initiated u/s 271(1)(c) of the Act and held that the assessee has concealed the particulars of income and filed inaccurate particulars of income for the additions sustained at Rs.34,62,090/- and levied the penalty u/s 271(1)(c) of the Act of Rs.10,75,083/- being 100% of the tax sought to be evaded on the additions of Rs.34,62,090/-. Against the said order, the assessee preferred appeal before the Ld. CIT(A) who had dismissed the same for non-prosecution.

3. Aggrieved by the said order, the assessee is in appeal before the Tribunal by taking following grounds of appeal:

“1. That the order dated 19.09.2025 passed u/s 250 of the Income-tax Act, 1961 by the Additional/Joint Commissioner of Income Tax (Appeals) 1, Vadodara is against law and facts on the file in as much as he was not justified to uphold the action of the Ld. Assistant Commissioner of Income Tax, Circle -28(1), New Delhi in levying a penalty of Rs. 10,75,083/- u/s 271(1)(c) of the Act, 1961 in respect of: (i) addition of Rs.9,59,524/- on account of disallowance u/s 14A of the Act in respect of expenses earned for earning exempt income; (ii) addition of Rs.24,88,876/-on account of disallowance, on estimated basis, of 25% of the amount of advance received from customers after giving benefit of 10% of expense incurred towards commission to sub-agents; (iii) addition of Rs. 13,690/- on account of Short Term Capital Gain; for alleged concealment of income OR furnishing inaccurate particulars of income, without considering the facts and circumstances of the case and the legal position.

2. That the order dated 19.09.2025 levying penalty u/s 271(1)(c) of the Income-tax Act, 1961 passed by the Additional/ Joint Commissioner of Income Tax (Appeals) 1, Vadodara is against law and facts on the file in, as much as, he was not justified to uphold the action of the Ld. Assistant Commissioner of Income Tax, Circle-28(1), New Delhi in imposing a penalty of Rs. 10,75,083/- for alleged concealment/furnishing inaccurate particulars of income, without specifying the limb of S. 271(1)(c) of the Act under which penalty proceedings had been initiated and penalty levied.

3. That the Appellant craves to add, amend, alter, modify OR 3 DLEETE any OR all of the grounds of appeal before OR at the time of hearing.”

4. Grounds of appeal No. 1 & 2 are with respect to the initiation of penalty proceedings without specifying the limb under which