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DY. Commissioner of Income Tax vs. Kanakia Spaces Realty Private Limited

Case No: ITA No. 6133/MUM/2025
Court: Income Tax Appellate Tribunal, Mumbai Bench ‘E’
Date: 1/20/2026

Parties Involved

AppellantDY. Commissioner of Income Tax
RespondentKanakia Spaces Realty Private Limited

Facts Summary

The case pertains to the assessment year 2011-12 where the Deputy Commissioner of Income Tax imposed a penalty on Kanakia Spaces Realty Private Limited for furnishing inaccurate particulars of income. The penalty was levied based on bogus purchases and accommodation entry donations. The assessee appealed against the assessment order, and the learned Commissioner of Income-tax (Appeals) deleted the penalty. The Revenue then appealed to the Income Tax Appellate Tribunal, arguing against the deletion of the penalty.

Decision in favour of

Assessee

Legal Issues

  • 1. Whether the penalty levied under section 271(1)(c) of the Income-tax Act is sustainable after the assessment order has been quashed.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

2 precedents cited in this judgement.

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Version 2.0.1Last updated: October 2025
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