ESCORTS KUBOTA LIMITED,FARIDABAD vs. ADDL. COMMISSIONER OF INCOME TAX, DELHI

ITA 6924/DEL/2025Status: DisposedITAT Delhi25 May 2026AY 2002-037 pages
AI SummaryAllowed

What were the facts?

The assessee company, Escorts Kubota Ltd., was assessed with income after several additions. Subsequently, the Assessing Officer (AO) initiated penalty proceedings under Section 271(1)(c) and imposed a penalty. The assessee appealed to the CIT(A), who partly allowed the appeal.

What did the Tribunal hold?

The Tribunal held that the penalty proceedings were initiated without specifying the exact limb of Section 271(1)(c) (concealment or furnishing inaccurate particulars) in the initial notice. This lack of specificity vitiated the penalty.

What were the issues?

Whether penalty proceedings under Section 271(1)(c) are valid if the initial notice does not clearly specify whether it is for concealment of income or furnishing inaccurate particulars.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 274,Section 271(1B)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHIBENCH ‘B’, NEW DELHI

Before: Sh. Challa Nagendra Prasad & Smt. Renu Jauhri

Hearing: 13.04.2026Pronounced: 25.05.2026

Per Renu Jauhri, Accountant Member:

The above captioned appeal is preferred by the assessee against the order dated 29.08.2025, passed by CIT(A)-3, Noida u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for A.Y. 2002-03. 2. The assessee has raised following grounds of appeal: “1 That on the facts and circumstances of the case and in law, the learned CIT(A) has erred in upholding the action of the Assessing Officer in imposing a penalty of Rs.1,97,09,246/- u/s 271(1)(c) of the I.T. Act without there being proper satisfaction recorded in terms of provisions of section 271(1)(c) read with section 274 of the Income-tax Act, during initiation of proceedings. 2.

The order continues below.

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