ITA No.3699/M/2024

Parties Involved

Facts Summary

The appellant, M/s. Saloni Jwellers Pvt. Ltd., is a Private Limited Company engaged in the business of trading and manufacturing in Jewellery, Silver, and Gold items. The company was declared as NPA from the FY 2015-16. The appellant filed its return of income for AY 2018-19 on 26th October 2018 reporting a total loss of Rs.36,99,585/-. The return was selected for scrutiny, and the assessment order under section 143(3) was passed on 13th April 2021, determining the total income at Rs.266,32,54,747. The assessee preferred appeal against the quantum order passed under section 143(3) of the Act dated 30th September 2021. The appellant filed an appeal before the Ld. CIT (A) against the penalty order passed by the Ld. AO u/s. 271AAC (1) of the Act. The Ld. CIT (A) confirmed the penalty order passed by the Ld. AO. Aggrieved by the order of the Ld. CIT (A), this appeal has been preferred before the ITAT, Mumbai.…

Legal Issues

• 1. Penalty levied by Assessing Officer of Rs.20,57,36,430/- u/s. 271AAC(1) of the Act.
• 2. Demand Notice u/s. 156 of the Act, dated 11.03.2022 issued 4 days prior to the penalty order.
• 3. Quantum proceedings for A.Y. 2018-19 sent back to Hon'ble CIT(A) vide order dated 25.10.2023.
• 4. Gross miscalculation of closing stock by CIT(A).
• 5. Non-Performing Assets (NPA) categorization by State Bank of India.
• 6. Short Term Borrowings amounting to Rs.178,14,79,769/- as unexplained investment u/s. 69 r.w.s. 115BBE of the Act.

Judgment Outcome

Decided in favour of Assessee.

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