DCIT, CENTRAL CIRCLE-3(2), , MUMBAI vs. M/S VIRAJ PROFILES PRIVATE LIMITED, MUMBAI

ITA 890/MUM/2025Status: DisposedITAT Mumbai29 September 2025AY 2018-19Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI PRABHASH SHANKAR (Accountant Member)25 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision to delete the penalties. It found that the penalties were levied mechanically without independent satisfaction of statutory requirements, and the additions were based on debatable claims, estimation, voluntary disclosures, or failed to meet the definition of 'undisclosed income'.

What were the facts?

The Revenue appealed against the deletion of penalties levied under Section 271(1)(c) and 271AAB by the CIT(A). The penalties were related to additions made in assessments concerning corporate guarantee commission, provision for diminution in stock, and unexplained cash/expenditure.

What were the issues?

Whether penalties under Section 271(1)(c) and 271AAB are exigible when additions are based on estimation, voluntary disclosures, or do not meet the statutory definition of 'undisclosed income'.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 271AAB,Section 69A,Section 69C

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Cases cited in this judgment(7)Show list

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Income Tax Appellate Tribunal, ‘F’ BENCH

Before: SHRI AMIT SHUKLA & SHRI PRABHASH SHANKAR

For Appellant: Shri Madhur Agarwal / Shri
For Respondent: Shri Vivek Perampurna, CIT-
Hearing: 07/05/2025Pronounced: 29/09/2025

PER AMIT SHUKLA (J.M): All the aforesaid appeals have been filed by the Revenue against separate order passed by ld. CIT(A) deleting the penalty levied u/s.271(1)(c) and 271AAB one arising out of additions made u/s.143(3) and other addition made in the assessment

The order continues below.

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