CAPACITE INFRAPROJECTS LIMITED ,MUMBAI vs. ACIT/DCIT CENTRAL CIRCLE 1(2) MUMBAI , MUMBAI

ITA 6309/MUM/2024Status: DisposedITAT Mumbai10 September 2025AY 2018-19Bench: SHRI. OM PRAKASH KANT (Accountant Member), SHRI. RAJ KUMAR CHAUHAN (Judicial Member)1 pages
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What did the Tribunal hold?

The Tribunal held that penalty under Section 270A was not justified as the issues were debatable at the time of assessment, especially concerning the employee PF/ESIC contributions, which was later settled by the Supreme Court. The additions were not considered misreporting of income.

What were the facts?

The assessee's appeal concerns penalty levied under Section 270A for assessment years 2017-18 and 2018-19. The penalty was based on additions related to deemed rental income and disallowance of employee contributions to PF/ESIC.

What were the issues?

Whether penalty under Section 270A is leviable on additions arising from debatable issues like deemed rental income and employee PF/ESIC contributions, particularly when the law was unsettled at the time of assessment.

Which sections of the Income-tax Act were involved?

Section 270A,Section 23(1),Section 23(4),Section 36(1)(VA),Section 2(24)(X),Section 153A,Section 115JB,Section 132

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Income Tax Appellate Tribunal, MUMBAI BENCH “C”, MUMBAI

Before: SHRI. OM PRAKASH KANT & SHRI. RAJ KUMAR CHAUHAN

For Appellant: Shri. Viraj Mehta
For Respondent: Shri. Virabhadra S. Mahajan
Pronounced: 10.09.2025

PER RAJ KUMAR CHAUHAN (J.M.): These appeals has been filed by the appellant/assessee against both order dated 15.10.2024 of Learned Commissioner of ITA No. 6315 & 6309/Mum/2024 CapaciteInfraprojects Limited; A.Y. 2017-18 & 2018-19 Income Tax, Central Circle 1(2), Mumbai[hereinafter referred to as the “CIT (A)”],passed under section 250 of the Income Tax Act, 1961 [hereinafter referred to as “the Act”] for the A.Y. 2017-18 and 2018-19 respectively.

2.

By this common order we propose to dispose off ITA No. 6315/Mum/2024 and ITA No. 6309/Mum/2024 as parties are same and facts

The order continues below.

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