Shiv Agrevo Ltd. Vs DCIT (ITAT Jaipur)
The case of Shiv Agrevo Ltd. vs. DCIT (ITAT Jaipur) revolves around the imposition of a penalty under Section 271(1)(c) of the Income Tax Act, 1961. The assessee, Shiv Agrevo Ltd., appealed against the penalty order dated 19-03-2020 for the assessment year 2015-16, arguing that the penalty was imposed on an estimated basis without concrete evidence of concealment or inaccurate particulars of income. The ITAT Jaipur bench, after detailed examination, delivered a judgment favoring the assessee, setting a significant precedent for similar cases.
Shiv Agrevo Ltd. filed an appeal against the order of the CIT(A), NFAC, Delhi, which upheld the penalty imposed by the AO under Section 271(1)(c). The grounds of appeal included arguments that the penalty order was bad in law, the show-cause notice issued was vague, and the penalty was contrary to the provisions of law.
The CIT(A) had upheld the penalty based on the rejection of the books of accounts under Section 145(3) and the subsequent addition of Rs. 1,80,80,961 by the AO. However, upon appeal, CIT(A) limited the addition to Rs. 40,84,751, stating that the addition was based on specific discrepancies in the accounts, and not merely on estimation.
