KADWA SAHAKARI SAKHAR KARKHANA LTD.,NASHIK vs. DEPUTY COMMISSIONER OF INCOME TAX- CIRCLE 1, NASHIK

ITA 69/PUN/2026Status: DisposedITAT Pune22 September 2026AY 2011-1210 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the issue regarding the addition for area development fund was debatable, having reached the Supreme Court, penalty under Section 271(1)(c) was not leviable. Therefore, the penalty order was set aside.

What were the facts?

The assessee, a cooperative sugar mill, was levied penalty under Section 271(1)(c) for concealment of income related to area development fund. The addition on this account was made based on information provided by the assessee.

What were the issues?

Whether penalty under Section 271(1)(c) can be levied when the addition is based on a debatable issue, even if the assessee provided the information.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “A”, PUNE

Before: SHRI MANISH BORAD & SHRI VINAY BHAMORE

For Appellant: Shri Pramod S. Shingte
For Respondent: Shri Rajesh Haladkar
Hearing: 02.07.2026Pronounced: 22.09.2026

PER VINAY BHAMORE, JM: These appeals filed by the assessee are directed against the separate orders dated 27.11.2025 passed u/s 271(1)(c) of the IT Act by Ld. CIT(A)/NFAC for the assessment years 2011-12, 1998-99 and 2002-03 respectively.

2.

Since identical facts and common issues are involved in all the above captioned three appeals of the assessee, therefore, we proceed to dispose of the same by this common order.

3.

First, we shall take up the appeal of the assessee in ITA No.69/PUN/2026 for A.Y. 2011-12 for adjudication as the lead case. ITA No.69/PUN/2026, A.Y. 2011-12 :

4.

The appellant has raised the following

The order continues below.

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