NAGREEKA EXPORTS LIMITED,KOLKATA vs. ITO, CIRCLE 5(1), KOLKATA, AAYAKAR BHAVAN

ITA 1524/KOL/2026Status: DisposedITAT Kolkata24 September 2026AY 2009-107 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the issue of whether the replacement expenditure was capital or revenue was debatable, with divergent judicial views. Relying on Supreme Court decisions, it concluded that a mere disallowance of a claim does not automatically amount to furnishing inaccurate particulars of income.

What were the facts?

The assessee claimed replacement costs of machinery as revenue expenditure, which the AO treated as capital expenditure and disallowed. Consequently, the AO initiated penalty proceedings under Section 271(1)(c) for furnishing inaccurate particulars of income.

What were the issues?

Whether penalty under Section 271(1)(c) can be levied for a debatable claim of expenditure, and if mere disallowance constitutes furnishing inaccurate particulars of income.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 37(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘C’ BENCH AT KOLKATA

Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 [the 'Act'] for AY 2009-10 dated 25.02.2026. ITA No(s). 1524/KOL/2026 Assessment Year(s) 2009-10 Nagreeka Exports Limited.

2.

The assessee is in appeal before t

The order continues below.

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