DWARKA CEMENT WORKS LIMITED(CONVERTED INTO DWARKA CEMENT WORKS LLP W.E.F 15-09-2022),MUMBAI vs. THE INCOME TAX OFFICER,WARD-6(2)(1),MUMBAI, MUMBAI

ITA 6706/MUM/2025Status: DisposedITAT Mumbai23 February 2026AY 2015-201614 pages
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What did the Tribunal hold?

The Tribunal held that penalty under section 271(1)(c) cannot be sustained as the reassessment order accepted the assessee's revised return without making any addition or disallowance. Furthermore, the penalty notice was deemed invalid due to the failure to specify whether the penalty was for concealment of income or furnishing inaccurate particulars.

What were the facts?

The assessee originally declared a loss for AY 2015-16. Upon reopening the case under section 148, the assessee voluntarily disallowed a bad debt claim of Rs. 1.18 crores, reducing the declared loss. The Assessing Officer (AO) subsequently initiated penalty proceedings under section 271(1)(c) of the Act.

What were the issues?

Whether penalty under section 271(1)(c) is leviable when no addition is made in reassessment, and if a penalty notice lacking specific charges is valid.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 148,Section 143(3),Section 147,Section 274,Section 139(1)

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Income Tax Appellate Tribunal, D BENCH MUMBAI

Before: SHRI SAKTIJIT DEY & SHRI MAKARAND VASANT MAHADEOKAR

For Appellant: Shri Satish Mody, Ld. AR
For Respondent: Shri Annavaram Kosuri, Ld. DR
Hearing: 19.02.2026Pronounced: 23.02.2026

PER MAKARAND VASANT MAHADEOKAR, AM: This appeal filed by the assessee is directed against the order dated 27.08.2025 passed by the learned Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] under section 250 of the Income-tax Act, 1961[hereinafter referred to as “the Act”] for the Assessment Year 2015–16, whereby the penalty of Rs. 37,29,845/- levied under section 271(1)(c) of the Act by the Assessing Officer was confirmed. Facts of the Case

2.

The assessee, Dwarka Cement Works Limited (now converted

The order continues below.

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