ROOPCHAND JEWELLLERS DELHI,NEW DELHI vs. ITO WARD 52(4), NEW DELHI

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ITA 682/DEL/2024Status: DisposedITAT Delhi02 June 2025AY 2015-16Bench: Sh. Satbeer Singh Godara (Judicial Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that not every quantum disallowance automatically attracts penalty under Section 271(1)(c). The case involved a subjective issue of profit re-estimation related to business turnover, which could not be covered under the penal provision.

What were the facts?

The assessee's appeal pertains to a penalty levied under Section 271(1)(c) of the Income Tax Act, 1961, for AY 2015-16. The penalty was imposed for furnishing inaccurate particulars of income, leading to a quantum addition of Rs. 4,54,583/- based on re-estimation of business profits.

What were the issues?

Whether penalty under Section 271(1)(c) is leviable for a subjective issue of profit re-estimation arising from business turnover differences.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI

Before: Sh. Satbeer Singh Godara

Hearing: 02.06.2025Pronounced: 02.06.2025

Asstt. Year : 2015-16 Roopchand Jewellers Delhi, Vs CIT(A)/NFAC, GF-3, Ground Floor, Tolstoy House, Delhi 15-17, Tolstoy Marg, New Delhi-110001 (APPELLANT) (RESPONDENT) PAN No. AAIFR7169P Assessee by: Sh. Ravi Kumar, CA Revenue by : Sh. Akhilesh Kumar Yadav, Sr. DR Date of Hearing: 02.06.2025 Date of Pronouncement: 02.06.2025 ORDER This assessee’s appeal for Assessment Year 2015-16, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2023-24/1059498922(1) dated 09.01.2024, in proceedings u/s 271(1)(c) of the Income Tax Act, 1961 (in short “the Act”).

2.

Heard both the parties at length. Case file perused.

3.

A perusal of the case file indicates at the outset that both the learned lower authorities have held the assessee to have furnished inaccurate particulars of income for the purpose of levying section 271(1)(c) penalty of Rs.1,40,466/- pertaining to the corresponding quantum addition of Rs.4,54,583/-, made on account of difference in business income after re-estimation of the profits element therein.

4.

This being the clinching factual position, I hereby quote CIT vs. Reliance Petroproducts (P) Ltd. (2010) 322 ITR 158 (SC) that it is not each and every quantum disallowance which would automatically attract the impugned penalty provision, to delete the penalty levied in the assessee’s hands in very terms. It is reiterated that the assessee’s instant case involves a subjective issue of re-estimation of profits it’s the business turnover which could hardly be covered under the above penal provision. Deleted accordingly.

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