Case Law Details
Madhya Gujarat Vij Company Ltd Vs ACIT (ITAT Ahmedabad)
As held by the Co-ordinate Bench of this Tribunal, the very reopening of assessment itself is bad in law. Based on change of opinion and there is no failure on the part of the assessee in declaring its income. Since the quantum appeal itself is being quashed, the penalty levied as against the reassessment order for furnishing inaccurate particulars has no legs to stand and the same is liable to be quashed.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This appeal is filed by the Assessee as against the Appellate order dated 20.09.2022 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “NFAC”), confirming the levy of penalty under section 271(1) (c) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year (A.Y) 2008-09.
2. The brief facts of the case is that the assessee filed its Return of Income for the Assessment Year 2008-09 declaring total income at Nil and claiming current year loss of Rs. 12,85,67,801/-. Regular assessment was completed u/s. 143(3) determining the total losses of Rs. 5,06,04,324/- (under normal provision) and book profit u/s. 115JB of the Act was determined at Rs. 2,77,73,370/-. Thereafter assessee’s case was reopened u/s. 147 and determining the total income at Rs. 10,96,93,680/- after making addition of Rs. 16.02 crores on account of prior period expenses. The Assessing Officer also initiated penalty proceedings for furnishing inaccurate particulars of income.
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