Case Law Details
DCIT Vs Sarva Haryana Gramin Bank (ITAT Delhi)
Introduction: The Income Tax Appellate Tribunal (ITAT) Delhi recently issued an order in the case of DCIT vs. Sarva Haryana Gramin Bank concerning a penalty imposed under Section 271(1)(c) of the Income Tax Act, 1961. This article provides an in-depth analysis of the case and the reasoning behind the ITAT’s decision.
Subheading 1: Background of the Case: Sarva Haryana Gramin Bank, the assessee, was subjected to a penalty under Section 271(1)(c) of the Income Tax Act for the assessment year 2015-16. The penalty was imposed by the Assessing Officer (AO) concerning certain disallowances and additions made during the assessment.
Subheading 2: Grounds of Appeal: The Revenue challenged the penalty imposed on the assessee, amounting to Rs.1,79,17,819, in its appeal to the ITAT Delhi. The penalty primarily arose from three disallowances:
(i) Disallowance of Rs.2,31,17,869 under Section 14A read with Rule 8D of the Income Tax Rules. (ii) Disallowance of deduction of Rs.2,33,02,768 for the amortization of premium paid at the time of purchasing securities over the remaining period. (iii) Disallowance of Rs.57,21,000 due to the loss on the sale of obsolete stationery and other petty items.
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