2026 (6) TMI 1497

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....PER AMITABH SHUKLA, AM, This appeal filed by the assessee is against order dated 15.10.2025 of the Learned Commissioner of Income Tax(Appeals)-27, New Delhi, [hereinafter referred to as 'ld. CIT(A)] arising out of assessment order dated 13.02.2021 passed u/s 270A of the Income Tax Act, 1961 pertaining to Assessment Year 2017-18. The word 'Act' herein this order would mean Income Tax Act, 1961. ....

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....t the claim of provision for leave encashment was made relying upon various judicial pronouncement. 3.1 That the Ld. CIT-(A) has erred in upholding the order of the Ld. AO as the Ld. AO failed to appreciate that the claim made by the appellant was based on a reasonable interpretation of law and supported by judicial precedents, and thus, no penalty was leviable as per the decision of the ....

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....d personal deposition of key employees, the ld. AO rejected the books of accounts of the assessee and proceeded to make addition of Rs.6,82,350/- on account of leave encashment claimed u/s 43B of the Act. Further, the ld. AO proceeded to impose penalty under section 270A of Rs.1,18,074/- on the said addition of Rs.6,82,380/-. The ld. CIT(A) confirmed the penalty after recording non-compliance of t....

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....of expenditure or payment of expenditure. 5. The ld. DR placed reliance upon the order of the lower authorities. 6. Heard rival parties perused the material available on records. We find force in the argument of the assessee that no penalty is leviable in case of debatable entries. As per facts of the case, the Form 3CD report showed that the auditor had disallowed the expenditure of leave e....