Kadwa Sahakari Sakhar Karkhana Limited v. DCIT

Parties Involved

Facts Summary

The assessee, a cooperative society engaged in the manufacture and sale of sugar and its by-products, filed an income return on 30.09.2011 declaring income of Rs.3,14,592/-. A revised return was filed on 31.03.2012 declaring income of Rs.1,20,91,720/-. The Assessing Officer completed the assessment on 04.03.2014, determining the total income at Rs.10,24,82,060/- after making various additions. The matter was set aside by the Tribunal on 01.05.2019 to be decided afresh in light of the Supreme Court judgment in Siddheshwar Sahakari Sakhar Karkhana Ltd. The Assessing Officer reassessed the income on 20.09.2021 at Rs.10,17,98,222/- and imposed a penalty under section 271(1)(c) of the IT Act. The assessee appealed to the Ld. CIT(A)/NFAC, which was partly allowed on 11.09.2024. The assessee further appealed to the Tribunal against the penalty order dated 27.06.2025.…

Legal Issues

• 1. Whether the penalty imposed under section 271(1)(c) of the IT Act for the addition of Rs.10,40,130/- on account of area development fund is justified.

Judgment Outcome

Decided in favour of Assessee.

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