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SATINDER PAL VS. ITO, WARD 34(5), NEW DELHI

Case No: ITA NO. 3307/Del/2024
Court: INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH “SMC”, NEW DELHI
Date: 2/21/2025

Parties Involved

appellantSATINDER PAL
respondentITO, WARD 34(5), NEW DELHI

Facts Summary

The assessment under sections 144, 147, and 144B of the Act was completed on 20.2.2023, after making an addition of Rs. 55,03,314/- on account of unexplained cash deposits under section 69A of the Act. The Assessing Officer (AO) initiated penalty proceedings under section 271F of the Act for non-filing of the original return of income under section 139(1) of the Act. The AO issued a notice under section 271F on 20.2.2023. The AO noted that the assessee was non-responsive and did not comply with

Decision in favour of

Assessee

Legal Issues

  • 1. Whether the order dated 16.5.2024 passed by the NFAC, Delhi under section 250 of the Act sustaining the order dated 7.8.2023 passed under section 271F of the Act is exfacie illegal, arbitrary, bad in law, and therefore deserves to be quashed.
  • 2. Whether the CIT(A) failed to appreciate that no penalty under section 271F of the Act could be levied on the assessee since the assessee was acting on the basis of his bonafide belief that his income for the relevant assessment year was below the taxable limit and therefore, the case of the assessee is squarely covered by section 273B of the Act.

Precedents Relied Upon

Judgment Outcome

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Version 2.0.1Last updated: October 2025
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