ACIT-19(3), MUMBAI, MUMBAI vs. ZEENAT SHAFIQUE JAGANI, MUMBAI

ITA 3721/MUM/2026Status: DisposedITAT Mumbai31 August 2026AY 2014-155 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the withdrawal of the claim was not voluntary as it was made after the AO's detection. Relying on the Supreme Court decision in MAK Data (P.) Ltd., the Tribunal found that the assessee failed to offer a bona fide explanation for concealment.

What were the facts?

The assessee claimed a deduction for bogus donations. Upon being questioned by the AO and informed about the bogus nature of the donation, the assessee withdrew the claim and paid the differential tax. The AO levied penalty under Section 271(1)(c).

What were the issues?

Whether penalty under Section 271(1)(c) can be levied when a bogus deduction claim is withdrawn during assessment proceedings. Whether the withdrawal of a claim after detection by the AO constitutes a voluntary disclosure absolving the assessee from penalty.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 35(1)(ii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “G”, MUMBAI

Before: JUSTICE (RETD.) C.V. BHADANG & SHRI PRABHASH SHANKAR

For Respondent: Shri Rajgopal K Parthasarthy
Hearing: 31/08/2026Pronounced: 31/08/2026

PER JUSTICE (RETD.) C.V. BHADANG, PRESIDENT :

By this appeal, Revenue is challenging the order dated 27.01.2026 passed by the National Faceless Appeal Centre, Delhi (‘CIT(A)’ for short) thereby deleting the penalty of Rs.11,89,650/- levied by the Assessing Officer (‘AO’ for short) under Section 271(1)(c) of the Income Tax Act, 1961 (‘Act’ for short). The appeal relates to assessment year 2014-15. 2. The brief facts are that on the basis of information received from the Investigation Department, that the name of respondent-assessee appears in the list of bogus donation entries, the assessee was asked to confirm the claim of donation made. Prior to that, assessee filed its Return of Income (RoI) d

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 271(1)(c)

All 25,141 judgments and leading authorities on Section 271(1)(c) →

Recent GST High Court judgments

Search GST case law →