MJ Patel Share and Stock Brokers Ltd. vs. ADIT CPC, Bengaluru

Parties Involved

Facts Summary

MJ Patel Share and Stock Brokers Private Limited (the assessee/appellant) filed an appeal against the appellate order passed by the Joint Commissioner of Income Tax (A) Visakhapatnam dated 12/01/2024. The appeal was against the order passed by the Deputy Director of Income Tax, Centralised Processing Centre, Bangalore under section 143 (1) of the Income Tax Act 1961 dated 24/8/2022. The assessee filed its return of income on 25/1/2022 declaring a total income of ₹1,71,41,810/–. The Central Processing Centre issued a communication on 14th April 2022, adding ₹1,12,984/– under section 143(1)(a)(iv) of the Act. The assessee contested this addition, stating that the payment was not a penalty. The appeal was dismissed by the CIT (A), leading to the current appeal before the ITAT.…

Legal Issues

• 1. Whether the learned ADDL/JCIT (A) erred in confirming the adjustment of ₹112,984/- under section 143(1)(a)(iv) as penalty or fine?
• 2. Whether the penalty of ₹112,984/- is compensatory in nature and the provisions of Explanation 1 to Section 37 are not attracted?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Ambica Education Trust Vs. Asst. Director of Income Tax, CPC

  Ahmedabad bench

• Lion Services 210, Padma, Tower II Rahendra Place, Delhi Vs. Addl. JCIT Ludhiana

  Delhi Bench ‘E’, New Delhi benchAY 2019-20Allowed

• Pramod Kumar Dubey vs. Income Tax Officer

  Agra bench

• Heritage Resorts Pvt. Ltd. vs. Deputy Commissioner

  A Bench, Delhi benchAY 2015-16Allowed

• Sindhu Resettlement Corporation Ltd. v/s DCIT, Circle-2(3)(1)

  Mumbai bench

• Aavas Financiers Limited vs. Income Tax Department

  Jaipur bench