HGP COMMUNITY PVT LTD (SUCCESSOR TO OMEGA ASSOCIATES),MUMBAI vs. ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 1(2), MUMBAI

ITA 904/MUM/2025Status: DisposedITAT Mumbai20 June 2025AY 2015-16Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that merely making an incorrect claim does not amount to furnishing inaccurate particulars, citing the Supreme Court judgment in CIT vs. Reliance Petro products Pvt. Ltd. The Tribunal found that the assessee had made complete disclosures and the shift in claiming income was due to protracted litigation, and subsequent years saw rental income assessed as business income.

What were the facts?

The assessee, HGP Community Pvt. Ltd., appealed against penalty proceedings under Section 271(1)(c) for AY 2015-16 and 2016-17. The penalty was levied due to disallowance of depreciation on leased assets, where the assessee had initially offered lease rental income as 'income from house property' instead of 'business income'.

What were the issues?

Whether penalty under Section 271(1)(c) is leviable for claiming depreciation on leased assets when the income was offered under 'house property' instead of 'business income', despite full disclosure and subsequent departmental acceptance of business income treatment.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 143(3)

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, ‘E‘ BENCH

Before: SHRI AMIT SHUKLA & SHRI GIRISH AGRAWAL

For Appellant: Shri Madhur Agrawal
For Respondent: Shri Hemanshu Joshi, SR DR
Hearing: 11/06/2025Pronounced: 20/06/2025

Heard together (2 matters)

ITA No.903/Mum/2025
ITA No.905/Mum/2025

Read from the judgment's own cause title. This page is filed under one of them.

2 ITA No.903-906/Mum/2025 HGP Community Pvt. Ltd., PER AMIT SHUKLA (J.M): The aforesaid appeals have been filed by the above named assessees against separate order of even date, 13/12/2024 passed by CIT(A)-47, Mumbai in relation to the penalty proceedings u/s.271(1)(c) for the A.Y.2015-16 and 2016-17.

The order continues below.

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