9X Media Private Limited Vs. Asst. Commissioner of Income Tax – 16(1), Mumbai.

Parties Involved

Facts Summary

The appellant, 9X Media Private Limited, filed its Return of Income (RoI) for the assessment year 2011-12 declaring income as Nil under the normal provisions of the Income Tax Act, 1961 and book profits of Rs.6,40,05,467/-. During scrutiny assessment, the Assistant Commissioner of Income Tax (AO) made additions to the book profits totaling Rs.14,74,54,793/- under various heads. The appellant challenged this order before the National Faceless Appeal Centre (NFAC), which partly allowed the appeal and remanded the matter to the AO. The AO then determined the total income at Rs.12,25,28,310/- and initiated penalty proceedings under Section 271(1)(c) of the Act for alleged concealment of income or furnishing inaccurate particulars. The appellant responded, claiming that the amounts were reflected in the accounts and that mere disallowance/addition should not result in penal consequences. The AO dismissed the appeal, leading to this appeal before the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the Ld. CIT(A) was justified in not considering CBDT’s Circular No. 25/2015 dated 31.12.2015.
• 2. Whether the penalty should be zero under Explanation 4 to section 271(1)(c) of the Act.
• 3. Whether the penalty was justified for the addition of Rs.13,30,79,646/- to book profits on account of surplus arising out of demerger.
• 4. Whether the penalty was justified for the addition of Rs.1,42,63,197/- to book profits on account of provision for doubtful debts.

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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