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Facts
The Revenue appealed against the deletion of penalty by the CIT(A) for furnishing inaccurate particulars of income regarding carry forward of losses. The assessee had filed a belated return and claimed business losses, which the Assessing Officer (AO) disallowed and initiated penalty proceedings under Section 271(1)(c).
Held
The ITAT held that the assessee wrongly claimed losses which were not allowable, thus furnishing inaccurate particulars of income. The tribunal disagreed with the CIT(A)'s deletion of the penalty, finding the claim was not genuine, and restored the AO's order.
Key Issues
Whether claiming unallowable brought forward losses, despite belated filing of return, amounts to furnishing inaccurate particulars of income warranting penalty under Section 271(1)(c).
Sections Cited
271(1)(c), 143(3), 263, 139(4)
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Income Tax Appellate Tribunal, GAUHATI BENCH, GUWAHATI
Before: SHRIDUVVURU RL REDDY, VP & SHRI RAJESH KUMAR, AM
This is an appeal preferred by the Revenue against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 11.09.2025 for the AY 2016-17.
The only issue raised by the Revenue is against the order of ld. CIT (A) deleting the penalty of ₹1,00,78,595/- as imposed by the ld. AO for furnishing inaccurate particulars of income in respect of carry forward of losses.
The facts in brief are that the assessee filed the return of income on 17.10.2016, declaring total loss of ₹2,98,51,729/-. The assessee is mainly engaged in the activity of power transmission. The
In the appellate proceedings, the ld. CIT (A) deleted the penalty by observing and holding as under:-
“The penalty order, the grounds of appeal and the submission have been perused. It is seen that the penalty u/s 271(1)(c) has been imposed for furnishing of inaccurate particulars of two amounts (i) an amount of Rs 6,31,275/- In respect of disallowances made by the AO to the extent sustained in appeals (ii) an amount of Rs.2,98,51,729/- which the AO had held as wrongly claimed loss in the belated Return filed u/s 139(4). I find that the appellant has pressed for the grounds related to the second amount only. It has been submitted by the appellant as follows: In this case the assessee, being Meghalaya Power Transmission Corporation limited (MePTCL) is mainly engaged eaming income from power transmission
In the result, the appeal of the Revenue is allowed.
Order pronounced on 13.03.2026.