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IN THE INCOME TAX APPELLATE TRIBUNAL

DELHI BENCH, ‘F’: NEW DELHI

BEFORE SHRI RAJ KUMAR CHAUHAN, JUDICIAL MEMBER

AND

SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER

ITA No.8153/Del/2015

[Assessment Year: 2016-17]

Vaansh Sharma, Income Tax Officer,

D-241, 2^nd Floor, Vivek Vihar, Ward-55(5),

Delhi-110095 Vs E-2, Civic Centre, Minto Road,

New Delhi-110002

PAN:FHXPS8720N

Appellant Respondent

Assessee by Shri Ankit Kumar, Adv.(VC)

Revenue by Ms. Harpreet Kaur Hansra, Sr. DR

Date of Hearing 23.04.2026

Date of Pronouncement 15.05.2026

ORDER

PER AMITABH SHUKLA, AM,

The captioned appeal has been preferred by the assessee against order

dated 08.10.2025 of the Commissioner of Income Tax (Appeals)/ National

Faceless Appeal Centre, New Delhi,[hereinafter referred to as ‘ld. CIT(A)’]

arising out of assessment order dated 27.06.2019 passed u/s 271(1)(c) of the

Income Tax Act, 1961 pertaining to Assessment Year 2016-17. The word

‘Act’ herein this order would mean Income Tax Act, 1961.

2. The assessee has raised following grounds of appeal:-

1. That the Ld. Assessing Officer (herein after referred as Ld. AO') has

erred in law and on the fact of the case by imposing the penalty under

ITA No.8153/Del/2025

section 271(1)(c) of the Act and thereby, raising a demand of Rs.

92,267/- and Ld. CIT(A) has erred while upholding the same.

2. That the Ld. AO has erred while imposing the penalty u/s 271(1)(c)

of the Act on account of furnishing of inaccurate particulars without

there being any addition in the course of assessment proceeding and

the order of Ld. CIT(A) suffers from fundamental fallacy while

upholding the finding of Assessing Officer.

3. The Ld. AO has erred in law and on facts by imposing the penalty on

difference of presentation of figures by the assessee in the Income Tax

Return and Tax Audit Report as the penalty has been imposed on

difference of opinion between the Ld. AO and the appellant on

presentation of figures and hence, in such case the penalty cannot be

levied for the concealment of income or furnishing the inaccurate

particulars of income and Ld. CIT(A) has also erred while upholding

the same.

4. That the Ld. AO as well as Ld. CIT(A) has erred while returning the

findings of furnishing of inaccurate particulars as it is contrary to the

settled principle that disclosure in tax audit report constitutes full

disclosure of material facts.

5. That the Ld. AO has erred in law as the penalty cannot be imposed

when the statutory requirement of "concealment" or "inaccurate

particulars" is not established with regard to material elements that

affect the taxable income and Ld. CIT(A) has erred while upholding the

finding of Assessing Officer.

6. That the Ld. CIT(A) has also erred while applying section 28,

explanation 2 of the Act to uphold the finding of Ld. AO which is overly

technical and not consistent with the legislative intent.

3. The only issue seminal to the present appeal is regarding the

imposition of penalty u/s 271(1)(c) of the Act. The ld. Counsel for the

assessee submitted that the penalty imposed upon the assessee of Rs.92,267/-

is totally untenable. It was submitted that no addition has been made in the

assessment order. The ld. Counsel of the assessee has argued that the Return

of Income of Rs.2,60,700/- was accepted vide order under section 143(3)

dated 21.12.2018. It was argued that in absence of any concealed income

indicated in the order, no case of imposition of penalty under section

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ITA No.8153/Del/2025

271(1)(c) was made out. It was accordingly requested that penalty order be

quashed.

4. The ld. Sr. DR, Ms. Harpreet Kaur Hansra, argued that penalty has

been imposed for submitting inaccurate particulars of income. The ld. Sr.

DR submitted that the AO had noted discrepancies in the figures given in the

Return of Income vis a vis tax audit report.

5. We have heard the rival submissions in the light of material available

on record. Section 271(1)(c) of the Act refers to imposition of penalty for

concealment or submitting inaccurate particulars of income, a pen