M/S. SURYA AUTOMOBILES PRIVATE LIMITED,ABOHAR V. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-II, BATHINDA

ITA 348/ASR/2023

AI Insights

The case involves Surya Automobiles Pvt Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, confirming the levy of penalty under section 271(1)(c) of the Income Tax Act, 1961. The penalty was imposed due to the non-capitalization of interest amounting to Rs. 18,82,009/-, which was an inadvertent mistake by the company's chartered accountant. The Tribunal found that the penalty proceedings are independent of the assessment proceedings and that the Assessee should not suffer due to the mistake of the Counsel. Consequently, the matter was remanded back to the CIT(A) for a fresh decision on the penalty issue.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 471032 (ITAT-AMRITSAR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Other Referred Cases: CIT vs. Ralblr Singh, CIT vs. Kamla Chemicals Industries, CIT vs. Agro Chemicals India, CIT vs. Ajaib Singh & Co, CIT vs. Mehta Engineers Ltd, CIT vs. Sangrur Vanaspati Mills Ltd
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: NEELAM SHARMA
• Assessee Lawyers: P. N. ARORA
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL ‘DIVISION BENCH’, AMRITSAR BEFORE SHRI UDAYAN DAS GUPTA, JUDICIAL MEMBER AND SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER aftfrcf ^t./iTA No. 348/Asr/2023 / Assessment Year : 2014-15 Surya Automobiles Pvt Ltd., Near DAV Campus, Hanumangarh Road, Abohar