ITA No.5867/DEL/2026 M/S NIHO CONSTRUCTION LTD. Vs. INCOME TAX OFFICER

Parties Involved

Facts Summary

This appeal arises from an order dated 20.03.2026 passed under section 250 of the Income Tax Act, 1961, by the NFAC. The assessee, M/S NIHO CONSTRUCTION LTD., had a loss of Rs.4,54,97,000/- disallowed by the Assessing Officer (AO) due to lack of proper documentary evidence. Several other additions were made, including balances written off, interest/rebate/delay charges, and disallowance under section 40(a)(ia). A penalty under section 271(1)(c) of the Act was levied at Rs.267,54,868/-. The assessee approached the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal (ITAT) with grounds protesting the denial of opportunity and pointing out a defect in the initiation of proceedings.…

Legal Issues

• 1. Whether the initiation of penalty proceedings was legally tenable as the notice did not specify whether the assessee was penalized for furnishing inaccurate particulars of income or for concealment of income.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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