M/s. Beacon Higher Education Services Pvt. Ltd. vs. ACIT, Circle 4 (2)

Parties Involved

Facts Summary

The assessee, M/s. Beacon Higher Education Services Pvt. Ltd., filed an appeal against the order passed by the Commissioner of Income-tax/National Faceless Appeal Centre (NFAC), Delhi, dated 16.02.2026, for the Assessment Year 2016-17, affirming the penalty order dated 14.02.2022 passed under section 271(1)(c) of the Income-tax Act, 1971. The appeal was based on the disallowance of depreciation and set off of losses claimed by the assessee in the quantum proceedings. The assessee argued that the penalty levied by the Assessing Officer (AO) was not justified as there was no definite finding by the AO regarding the concealment of income or furnishing of inaccurate particulars of income. The Revenue did not object to the factual position explained by the assessee's representative.…

Legal Issues

• 1. Whether the penalty under section 271(1)(c) of the Act can be imposed on the basis of disallowance of expenditure?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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