Matter remanded for fresh decision on s.270A immunity after penalty levied without adjudication; contentions kept open

ITAT restored the matter to the file of the AO to decide, on merits, an application for immunity under s.270A that the AO and CIT(A) had not adjudicated; penalty had been levied without addressing immunity, and immunity was initially denied due to the assessee's failure to file Form 28 within the statutory time. All contentions raised before the ITAT are kept open for consideration by the AO. The appeal is partly allowed.

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The assessee AOP filed return for AY 2018-19 declaring total income of Rs. 1,20,22,050. The AO completed assessment u/s. 143(3) r.w.s. 144B on 20.04.2021 fixing total income at Rs. 1,82,70,297 by making an addition of Rs. 62,48,247 as the difference in claimed and allowed deduction under section 80P. Penalty proceedings were initiated u/s. 270A and immunity was denied for failure to file the prescribed application in Form 28 before the jurisdictional AO within one month; penalty of Rs. 10,81,197 was levied. The CIT(A) confirmed the penalty without addressing the assessee's claim for immunity. The Tribunal held that, since the AO and CIT(A) "without dealing with the issue of immunity, had merely levied and confirmed the penalty," "the ends of justice would be met if the matter is restored to the file of the AO to consider the application for immunity filed by the assessee on merits." All contentions raised before the Tribunal are left open for consideration by the AO. Appeal partly allowed.

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