ASSISTANT COMMISSIONER OF INCOME TAX, MUMBAI vs. NEVALES NETWORKS PRIVATE LIMITED, MUMBAI

ITA 4827/MUM/2025Status: DisposedITAT Mumbai17 November 2025AY 2013-14Bench: SHRI VIKRAM SINGH YADAV (Accountant Member), SHRI SANDEEP SINGH KARHAIL (Judicial Member)11 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s deletion of penalty. It found that the impairment loss was suo-moto disallowed by the assessee, the service tax receivable was correctly treated as an expense, and the advance revenue was properly accounted for as per the mercantile system.

What were the facts?

The Revenue appealed the deletion of penalty under Section 271(1)(c) by the CIT(A). The additions leading to the penalty were on account of impairment loss on fixed assets, provision for service tax receivable, and unaccounted revenue.

What were the issues?

Whether penalty under Section 271(1)(c) is leviable when additions made in assessment are explained by the assessee during penalty proceedings, and whether the additions themselves were correctly made.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 143(3),Section 37

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Income Tax Appellate Tribunal, MUMBAI “B” BENCH : MUMBAI

Before: SHRI VIKRAM SINGH YADAV & SHRI SANDEEP SINGH KARHAIL

For Appellant: Shri Piyush Chhajed
For Respondent: Shri Leyaqat Ali Aafaqui

PER VIKRAM SINGH YADAV, A.M : This is an appeal filed by the Revenue against the order of the Learned Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre (NFAC), Delhi [„Ld.CIT(A)‟], dated 20-05-2025, pertaining to Assessment Year (AY) 2013-14, wherein the Ld.CIT(A) has deleted the levy of penalty u/s. 271(1)(c) of the Income Tax Act, 1961 („the Act‟).

2

2.

Briefly the facts of the case are that the assessee-company has filed its return of income declaring a loss of Rs. 5,78,39,697/- which was subsequently, revised at a loss of Rs. 6,01,43,201/-. The return of income was selecte

The order continues below.

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