Vijay M. Mistry Construction Pvt. Ltd. vs. DCIT

Parties Involved

Facts Summary

The assessee, Vijay M. Mistry Construction Pvt. Ltd., is a company engaged in the development and specialized construction of river bridges, railway over bridges, flyovers, and marine structures with pile foundation. For the Assessment Year 2013-14, the assessee filed its Return of Income on 19-09-2013, declaring a total income of Rs. 3,07,54,010/- after claiming a deduction under section 80IA(4) of Rs. 13,34,49,049/-. The Assessing Officer disallowed the deduction, finding that the assessee was not carrying out the projects as a developer but only as a works contractor. Consequently, the Assessing Officer initiated penalty proceedings for concealment of income under section 271(1)(c) of the Income Tax Act, 1961. The assessee appealed to the Commissioner of Income Tax (Appeals), who confirmed the penalty. The assessee further appealed to the Income Tax Appellate Tribunal, which allowed the appeal and deleted the penalty.…

Legal Issues

• 1. Whether the learned NFAC has grievously erred in confirming the levy of penalty under section 271(1)(c) of the Act with respect to the bonafide claim of deduction under section 80IA(4) of the Act.
• 2. Whether the entire penalty ought to have been deleted as the Hon’ble ITAT has allowed the claim of deduction under section 80IA(4) of the Act in the quantum appeal.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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