DCIT,CC-1,RANCHI, RANCHI vs. NIRMAL KUMAR PRADEEP KUMAR, RANCHI

ITA 406/RAN/2024Status: DisposedITAT Ranchi21 April 2026AY 2020-218 pages

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the payments were compensatory and not penal, following the Supreme Court's decision in Karnataka Rare Earth & Anr. The CIT(A)'s order deleting the disallowance was upheld.

What were the facts?

The assessee was engaged in illegal mining and claimed certain payments as revenue expenditure. The AO treated these payments as penal in nature and disallowed them. The CIT(A) granted relief, holding the payments to be compensatory.

What were the issues?

Whether payments made for illegal mining are compensatory or penal in nature, and if compensatory, whether they are allowable as revenue expenditure.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI

Before: S/SHRI GEORGE MATHAN & RATNESH NANDAN SAHAY

For Appellant: Shri P.S.Paul, CA

For Respondent: Shri Ashish Kumar Deharia, ld CIT DR

Hearing: 21/04/2026Pronounced: 21/04/2026

Per Bench This is an appeal filed by the revenue against the order of the ld CIT(A), Patna-3 dated 01.08.2024 in Appeal No. CIT(A) Patna-3/10459/2019-20 for the assessment year 2020-21. 2. Shri P.S. Paul, ld AR appeared for the assessee and Shri Ashish Kumar Deharia, ld CIT DR appeared for the revenue.

At the outset, ld. CIT DR has filed written submission which reads as under:-

P a g e 1 | 8 Assessment Year : 2020-21

P a g e 2 | 8 Assessment Year : 2020-21

P a g e 3 | 8 Assessment Year : 2020-21

P a g e 4 | 8 Assessment Year : 2020-21

P a g e 5 | 8 Assessment Year : 2020-21

P a g e 6 | 8 Assessment Year : 2020-21

It was the submission that the assessee wa

The order continues below.

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