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

ITA 6315/MUM/2024Status: DisposedITAT Mumbai10 September 2025AY 2017-18Bench: 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 imposing penalty on a debatable issue, especially when the jurisdictional High Court's view favored the assessee at the time, is not justified. The penalty was deleted as it was based on a matter that was settled by the Supreme Court later.

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, particularly concerning deemed rental income and employee PF/ESIC contributions, when the law was not settled 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)

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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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