Income Tax Appellate Tribunal, Mumbai Benches, Mumbai

Parties Involved

Facts Summary

The assessee, Urmila Syntex, a partnership firm engaged in trading in grey textile fabrics, yarn, and commission agency, filed its return of income for the Assessment Year 2013-14, declaring total income as NIL. The case was selected for scrutiny, and statutory notices under Section 143(2) were issued. Despite certain details being furnished, the assessee failed to provide complete details and supporting documentary evidence. The assessment was completed under Section 144 of the Income Tax Act, resulting in additions for disallowance of bad debts/sundry balances written off amounting to Rs. 20,39,69,374/- and addition of unsecured loans amounting to Rs. 11,38,270/-. Penalty proceedings under Section 271(1)(c) were initiated, and a penalty of Rs. 6,97,16,088/- was levied. The Commissioner of Income Tax (Appeals) deleted the penalty, which the Revenue appealed against.…

Legal Issues

• 1. Whether the Ld. CIT(A) erred in deleting the penalty under section 271(1)(C) with regard to the addition of bad debts written off of Rs 203969374/-.
• 2. Whether the Ld. CIT Appeal erred in deleting the penalty under section 271(1)(C) of the addition of bad debts written off of Rs 203969374/-.
• 3. Whether the Ld. CIT Appeal erred in deleting the penalty under section 271(1)(C) on the addition of bad debts written off of Rs.203969374/-.
• 4. Whether the Ld. CIT Appeal erred in deleting the penalty derived on the addition of unsecured loans of Rs.1138270/-.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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