ACIT CC-1 , RANCHI vs. M/S USHA MARTIN LTD , KOLKATA

ITA 1/RAN/2019Status: DisposedITAT Ranchi27 August 2026AY 2007-0825 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that mere additions or disallowances in the assessment order do not automatically lead to the imposition of penalty. The assessee had discharged its onus and established the bona fide nature of its claims, leading to the deletion of the penalty.

What were the facts?

The Revenue appealed against the deletion of penalty under Section 271(1)(c) by the CIT(A) concerning transfer pricing adjustments and disallowances of certain expenses. The Assessing Officer had imposed penalty on the grounds of furnishing inaccurate particulars of income.

What were the issues?

Whether penalty under Section 271(1)(c) is leviable solely on account of additions/disallowances made in the assessment, or if the assessee's bona fide and discharge of onus are crucial factors.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 92C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI

Before: SHRI GEORGE MATHAN & SHRI RATNESH NANDAN SAHAY

For Appellant: Shri Aditya Hans and Shri Vishal Jain
For Respondent: Shri H. Robindro Singh, CIT-DR, Shri Aditya Hans and Shri Vishal Jain
Hearing: 29/07/2026Pronounced: 27/08/2026

PER: BENCH

1.

This is the appeal filed by the revenue against the order of the ld. CIT(A)-3, Patna dated 31/10/2018 for the A.Y. 2007-08 wherein the revenue has raised following grounds of appeal:

"

1.

That on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting penalty u/s 271(1)(c) in respect of Transfer Pricing (TP) adjustment on export of goods of Rs. 38,95,03,560/- as determined by TPO.

2.

That on the facts and circumstances of the case and in law, the Ld CIT(A) has erred in deleting penalty u/s 271(1)(c) in respect of Transfer Pricing adjustment towards interest on loan to Associated Enterprise (AE) in T

The order continues below.

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