Himalayan Vacations Private Limited Vs ACIT (ITAT Dehradun)
The Income Tax Appellate Tribunal (ITAT), Dehradun, delivered its order in the case of Himalayan Vacations Private Limited vs. ACIT concerning Assessment Year 2018–19. The appeal was filed by the assessee against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 20 January 2025, passed under Section 250 of the Income Tax Act, 1961.
The assessee, a private limited company, filed its return of income electronically, declaring a total income of ₹85,03,260. The case was selected for limited scrutiny for examining business expenses. After assessment proceedings, the Assessing Officer (AO) disallowed ₹5,76,822 out of sales promotion expenses. Subsequently, penalty proceedings under Section 270A were initiated on the ground of under-reporting of income due to misreporting.
Following the completion of proceedings, the AO imposed a penalty under Section 270A(9)(a) amounting to ₹3,56,478, representing 200% of the tax payable on the disallowed income. The AO held that the assessee had under-reported income through misrepresentation or suppression of facts. The assessee’s appeal before the CIT(A) was dismissed on 20 January 2025.
Aggrieved, the assessee approached the Tribunal, challenging the penalty order. All grounds raised pertained to the imposition of penalty under Section 270A.
