2026 (5) TMI 298

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....hri Rajesh Kumar Dhanesta, Sr. DR ORDER PER SANJAY AWASTHI, ACCOUNTANT MEMBER: 1. This appeal arises from order dated 13.08.2025, passed u/s 250 of the Income Tax Act, 1961 (hereafter as "the Act") by Ld. CIT(A), NFAC. In this case, a penalty u/s 271(1)(c) of the Act has been levied on account of two additions to the income as under: - a. Disallowance of depreciation expenses of ....

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....rival submissions and have gone through the records before us. At this stage, we need to extract relevant portions from the impugned order: - "6.1.2 The appellant explained that the disallowance u/s 14A has been deleted by the Hon. ITAT vide order no ITA No. 2982/Del./2015 in the appellant's own case in A.Y. 2010-11 asunder:- 6.5 We find that the Assessing Officer is under the im....

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....cial pronouncements on this issue. The Hon'ble ITAT, Chandigarh Bench in ITA [2023] 152 taxmann.com 90 (Chandigarh - Trib.) 103 held that where penalty under section 271(1)(c) was imposed upon assessee for reason that disallowance under section 14A read with rule 8D made by Assessing Officer was sustained by Tribunal, since no any independent and specific as to how disallowance so made by Assessin....

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....rt is relevant: "The revenue contended that since the assessee had claimed excessive deductions knowing that they were incorrect, it amounted to concealment of income. It was argued that the falsehood in accounts can take either of the two forms: (i) an item of receipt may be suppressed fraudulently; (ii) an item of expenditure may be falsely (or in an exaggerated amount) claimed, and bot....