Alex Energy Pvt Ltd Vs ACIT (ITAT Kolkata)
The appeal by Alex Energy Pvt Ltd was against the order of the CIT(A)-NFAC, Delhi, dated 22.11.2024, confirming a penalty of ₹1,03,825 imposed under Section 271(1)(c) of the Income Tax Act, 1961 for AY 2016-17. The assessee had filed its return declaring a total loss of ₹4,53,53,108, later revised on 17.10.2016. In scrutiny assessment under Section 143(3), completed on 25.12.2018, the Assessing Officer found that the assessee had claimed a long-term capital loss involving the sale of 33,70,667 shares of Futuregrow Spectrum Pvt. Ltd. for ₹3 crore. Based on the valuation certificate, the fair value was determined at ₹9 per share, resulting in a total consideration of ₹3,03,36,003.
The differential amount of ₹3,36,003 was consequently added back, and penalty proceedings under Section 271(1)(c) were initiated. The AO subsequently imposed a penalty of ₹1,03,825, being 100% of the tax sought to be evaded, after noting non-compliance during the penalty proceedings. The CIT(A) confirmed the penalty, observing that incorrect information concerning the long-term capital loss resulted in concealment of income and relying on Explanation (iv) to Section 271(1). Before the ITAT, the assessee submitted that the discrepancy arose solely from rounding off the share value, that the transactions themselves were not disputed, and that the assessee had a bona fide explanation for adopting the actual consideration.
