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ITA No.5566/Mum/2025

Case No: ITA No.5566/Mum/2025
Court: INCOME-TAX APPELLATE TRIBUNAL, MUMBAI BENCH ‘G’, MUMBAI
Date: 1/7/2026

Parties Involved

appellantITO, Ward-19(3)(4), Mumbai
respondentSpark Diamonds

Facts Summary

The instant appeal was filed by the revenue against the order of the National Faceless Appeal Centre (NFAC), Delhi, passed under section 250 of the Income-tax Act, 1961, for Assessment Year 2007-08. The impugned order emanated from the order of the Income-tax Officer, Ward 19(3)(4), Mumbai, passed under section 271(1)(c) of the Act. During the assessment year, an addition of Rs.1,35,719/- was confirmed, being 6% on the bogus purchases of Rs.22,61,986/-. The Ld. AO levied a penalty of Rs.41,940/- being 100% of the tax sought to be evaded for furnishing inaccurate particulars of income. The assessee filed an appeal before the Ld. CIT(A), who deleted the penalty relying on a previous ITAT order.

Decision in favour of

Assessee

Legal Issues

  • 1. Whether the penalty levied on estimated additions is sustainable in law?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

1 precedent cited in this judgement.

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