BR Agrotech Limited Vs DCIT (ITAT Delhi)
The appeal was filed by the assessee against the order of the Commissioner of Income Tax (Appeals)-27, New Delhi dated 15.10.2025, arising from the penalty order dated 13.02.2025 passed under Section 270A of the Income Tax Act, 1961 for Assessment Year 2017-18. The assessee challenged the levy of penalty of Rs. 1,18,074 on account of under-reported income, contended that the CIT(A) had passed an ex parte order without providing a fair opportunity of hearing, and argued that the claim for leave encashment was made on the basis of judicial precedents and a reasonable interpretation of law.
The assessee had originally filed its return of income on 31.10.2017, declaring an income of Rs. 35,05,72,910, and was engaged in the business of manufacturing and sale of PET bottles to alcohol industries and distilled water companies. A search and seizure operation under Section 132 was conducted on 30.01.2023, resulting in the recovery of various incriminating documents. Based on those documents and the statements of key employees, the Assessing Officer rejected the books of account and made an addition of Rs. 6,82,350 on account of leave encashment claimed under Section 43B of the Act. The Assessing Officer thereafter imposed a penalty of Rs. 1,18,074 under Section 270A, which was confirmed by the CIT(A) after recording non-compliance with statutory notices.
