Case Law Details
VDB Infra and Realty Private Limited Vs ITO (ITAT Bangalore)
In a recent case before the Income Tax Appellate Tribunal (ITAT) Bangalore, the issue of levying penalty under Section 270A(9)(a) of the Income Tax Act, 1961, for adhoc disallowance of expenditure was thoroughly examined. The case involved VDB Infra and Realty Private Limited versus the Income Tax Officer (ITO) and raised significant questions regarding the applicability of penalties for alleged misreporting of income.
The appeal was directed against the order of the National Faceless Appeal Centre (NFAC) for the assessment year 2017-18, where the assessee contested the penalty levied under Section 270A(9)(a) by the assessing officer (AO).
Facts of the Case:
VDB Infra and Realty Private Limited, engaged in real estate development, had claimed various expenditures during the assessment year amounting to Rs. 49,51,98,852/-. However, the AO disallowed a portion of the claimed expenses, amounting to Rs. 9,95,541/-, on an adhoc basis due to the inability of the assessee to provide specific details for certain expenses. Consequently, a penalty under Section 270A(9)(a) was initiated against the assessee for alleged misreporting of income.
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