IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘G’ BENCH, NEW DELHI BEFORE MS. MADHUMITA ROY, JUDICIAL MEMBER, AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER Vitasta Estates Pvt Ltd Vs. The A.CI.T.

15, Dr. Abdul Kalam Road Circle – 17(1)

New Delhi Delhi PAN – AACCV 0862 E (Applicant) (Respondent)

Assessee By : Shri Raj Kumar, CA Shri Suraj Gupta, Adv Department By : Shri Manish Gupta, Sr. DR Date of Hearing : 06.08.2025 Date of Pronouncement : 19.08.2025

ORDER

PER NAVEEN CHANDRA, A.M:-

This appeal by the assessee is preferred against the order of NFAC, Delhi dated 28.02.2025 for A.Y 2008-09.

2. The sum and substance of the grievance of the assessee is that the penalty order u/s 271(1)(c) of the Income-tax Act, 1961 [hereinafter referred to as 'the Act'] imposing penalty of Rs. 3,32,17,106 is illegal and unsustainable in law and is fatally defective for not specifying the limb under which the penalty action has been initiated.

3. Roots for levy of penalty lie in the assessment order dated

23.10.2010 framed u/s 143(3) of the Act.

4. Brief facts of the case are that the return of income was filed on 07.10.2008 declaring loss of Rs. 11,07,23,687. However, the Assessing Officer assessed the income of