MACEDON VINIMAY PVT. LTD.,KOLKATA vs. A.C.I.T., CC - 3(4), KOLKATA

ITA 54/KOL/2026Status: DisposedITAT Kolkata29 June 2026AY 2019-20203 pages
AI SummaryAllowed

What were the facts?

A search and seizure action was conducted on the assessee company. The Assessing Officer made an addition on account of interest expenditure on unsecured loans. Subsequently, a penalty was levied under Section 271AAB of the Income-tax Act.

What did the Tribunal hold?

The Tribunal held that the penalty was unsustainable in law as there was no disclosure during search proceedings and no documents were seized. The Assessing Officer levied the penalty without proper application of mind.

What were the issues?

Whether the penalty levied under Section 271AAB is justified when there was no specific disclosure or seizure during the search proceedings, and the addition was based on disallowance of interest expenditure.

Which sections of the Income-tax Act were involved?

Section 271AAB,Section 132,Section 143(3),Section 36(i)(iii),Section 274

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, KOLKATA

For Appellant: Shri Vineet Surana, AR
For Respondent: Shri Sandip Sarkar, DR
Hearing: 16.06.2026Pronounced: 29.06.2026

Per Rajesh Kumar, AM:

This is an appeal preferred by the assessee against the order of the Commissioner of Income-tax (Appeals), Kolkata- 21, (hereinafter referred to as the “Ld. CIT(A)”] dated 16.12.2025 for the AY 2019-20. The penalty was levied u/s 271AAB of the Act vide order dated 10.09.2021. 2. The only issue raised by the assessee in the various grounds of appeal is against the order of ld. CIT (A) confirming the MACEDON VINIMAY PVT. LTD; A.Y. 2019-20 penalty levied by the ld. AO u/s 271AAB of the Income-tax Act, 1961 (the Act).

3.

The facts in brief are that a search and seizure action u/s 132 of the Act was conducted on Dhanuka Group of cases on 17.01.2019. The assessee company is al

The order continues below.

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