Hon’ble Delhi ITAT has in the case of M/s. Fortune Ploymers Industries Pvt.Ltd. vs. DCIT, has held that Penalty u/s 271(1)(c) cannot be imposed on an un-detailed assessment order passed in a cursory and summary manner .
Facts in brief:- The assessee is a company incorporated in July, 1988. It was engaged in the business of manufacturing of PVC Water Storage Tanks. The manufacturing facility was constituted at Plot no.6B, Site B, Surajpur,Greater Noida, U.P. The company was financed by U.P. Financial Corporation (hereinafter called UPFC) and Pradeshiya Industrial and Investment Corporation of U.P. (hereinafter called PICUP).
2.1. On 28.7.1995, the assessee was taken over by UPFC for failure to clear dues. On 13.12.1996, reference was filed u/s 15(1) of the Sick Industrial Companies Act, for declaring the assessee as a sick company. On 18.3.1997 BIFR declared the assessee as a sick company. Thereafter on 30.11.1997 the assessee filed a return for losses. On 23rd Feb.2000 the Board of Industrial and Financial Reconstruction (BIFR) ordered for winding up. Just before passing the order of winding up the AO passed order u/s 143(3) on 10th Feb.2000 determining the assessed income at ‘nil’. Thereafter penalty was levied u/s 271(1)© on deemed income of Rs. 3,90,43,136/- being loss claimed and disallowed.
