M/S DISINFECTO CHEMICAL INDUSTRIES PRIVATE LIMITED,LUCKNOW vs. ASSTT. COMMISSIONER OF INCOME TAX, RANGE-2, LUCKNOW

ITA 896/LKW/2025Status: DisposedITAT Lucknow30 June 2026AY 2011-1210 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the disallowance sustained by the CIT(A) was on an ad hoc and estimated basis, without finding fault with the assessee's documentation. Furthermore, the penalty notice under section 271(1)(c) was found to be vague, vitiating the penalty proceedings.

What were the facts?

The assessee made purchases from a company identified as a potential 'entry provider' by the Sales Tax Department. Despite providing bills, bank statements, and other supporting documents, the Assessing Officer (AO) treated the purchases as bogus and added the amount back. The CIT(A) restricted the addition on an estimated basis.

What were the issues?

Whether penalty under Section 271(1)(c) can be levied on an estimated disallowance, and if a vague penalty notice renders the proceedings invalid.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 274,Section 69C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW ‘A’ BENCH, LUCKNOW

Hearing: 30.04.2026Pronounced: 30.06.2026

PER NIKHIL CHOUDHARY, A.M.: This is an appeal filed by the assessee against the orders of the ld. CIT(A), NFAC dated 9.10.2025, under section 250 of the Income Tax Act, 1961, wherein the ld. CIT(A) has dismissed the appeal of the assessee against the penalty under section 271(1)(c) for the A.Y. 2011-12, that was levied by the Assessing Officer on 26.06.2025. The grounds of appeal are as under:- “1. The Learned Commissioner of Income Tax (Appeals) was not justified and erred in Law and on the facts in confirming a penalty of Rs. 31,580/- while the Notice section 271(1)(c) dated 07.12.2018 was issued by AO under section 274 read with bad in law, as it did not specify under

The order continues below.

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