ACIT, CENTRAL CIRCLE- 15, NEW DELHI vs. NAGAR DAIRY PVT. LTD., NEW DELHI

PDF · subscribers
ITA 3989/DEL/2018Status: DisposedITAT Delhi27 July 2021AY 2010-113 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s order, agreeing that penalty is not tenable on ad-hoc disallowances and debatable issues. The lack of specificity in the penalty notice was also a critical factor in sustaining the deletion.

What were the facts?

A search action led to assessment with significant additions. Penalty proceedings were initiated, but the CIT(A) deleted the penalty, finding the disallowances ad-hoc and debatable. The notice for penalty also lacked specificity regarding the limb of Section 271(1)(c).

What were the issues?

Whether penalty under Section 271(1)(c) can be levied on ad-hoc disallowances and debatable issues? Whether a penalty notice under Section 274 lacking specificity is sustainable?

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 274

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, DELHI BENCH “E”: NEW DELHI

Before: MS SUCHITRA KAMBLE & SHRI PRASHANT MAHARISHI

For Appellant: Shri Divyansh Jain, CA
For Respondent: Shri Gaurav Pundir, Sr. DR, Shri Divyansh Jain, CA
Hearing: 27/7/2021Pronounced: 27/07/2021

O R D E R PER PRASHANT MAHARISHI, A. M.

1.

This appeal is filed by the revenue against the order of the ld CIT(A)- XXVI, New Delhi 16.03.2018 for Assessment Year 2010-11, wherein, the penalty levied u/s 271(1)(c) of the Act vide order dated 20.03.2017 by the ld Asstt. Commissioner of Income Tax, Central Circle-15, New Delhi was deleted.

2.

Briefly stated the facts shows that a search and seizure action was carried out in the case of the Assessee on 17.09.2010. The assessment u/s 144 read with section 153C was completed on 28.03.2013 at the total income of Rs. 2,90,63,39,728/- which was later on rectified at an income of Rs. 1,82,29,24,640/- against the return of income was Rs. 1,52,44,063/-. The addition was made in the hands of the assessee being disallowance of various expenditure. The

More judgments on Section 271(1)(c)

All 25,141 judgments and leading authorities on Section 271(1)(c) →

Recent GST High Court judgments

Search GST case law →