AMRITA GEM PRIVATE LIMITED,SURAT vs. ITO, WARD 1(1)(1), SURAT

ITA 233/SRT/2026Status: DisposedITAT Surat31 August 2026AY 2017-1813 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the charge under section 68 read with section 115BBE was sustained by the ITAT, and the reduction in addition was a measure to balance equity, not an estimation. Therefore, the penalty was justified.

What were the facts?

The assessee's income was assessed at Rs. 54,54,030/- after an addition of Rs. 53,21,482/- for undisclosed income. The ITAT partly allowed the appeal, restricting the addition to Rs. 5,32,148/-. Subsequently, a penalty under section 271AAC(1) was levied on this restricted addition.

What were the issues?

Whether penalty under Section 271AAC(1) is leviable when the addition is reduced by the ITAT, and if the ITAT's reduction based on equity implies the original charge is not sustained.

Which sections of the Income-tax Act were involved?

Section 68,Section 115BBE,Section 271AAC(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

Before: SHRI B.M. BIYANI & SHRI PARESH M JOSHI

Hearing: 23.07.2026Pronounced: 31.08.2026

Per Paresh M Joshi, J.M: This is an appeal filed by the Assessee under section 253 of the income tax Act 1961, [hereinafter referred to as the Act for the sake of brevity] before this tribunal. The Assessee is aggrieved by the order bearing No: -ITBA/NFAC/S/250/2025 -26/1083439077(1) dated 08.12.2025 passed by the Ld. CIT (A) u/s 250 of the Act, which is hereinafter referred to as the “Impugned order”. The Relevant Assessment year is 2017-

AMRITA GEM PRIVATE LIMITED ITA No. 233/SRT/2026 - A.Y. 2017-18

18 and the corresponding previous year period is from 01.04.2016 to 31.03.2017. 2. Factual Matrix

2.

1 That as and by way of an Assessment order made u/s 143(3) of the Act, the total inc

The order continues below.

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