Penalty under section 270A upheld; immunity under section 270AA denied for lack of acknowledged Form 68 filing.

Penalty under section 270A was sustained because the assessee failed to produce reliable documentary evidence of a valid, acknowledged Form No. 68 filing required for immunity under section 270AA; the return was filed only after notice under section 148 and no contemporaneous acknowledgement or ITBA portal record established immunity. Alleged subsequent rectifications and manual communications were not supported by dispositive orders or verifiable acknowledgments, therefore immunity under section 270AA was denied and the penalty for under-reporting was upheld, resulting in dismissal of the appeal.

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Issues: (i) Whether the penalty levied under section 270A of the Income-tax Act, 1961 is justified for under-reporting of income for assessment year 2018-19; (ii) Whether the assessee is entitled to immunity from penalty under section 270AA of the Income-tax Act, 1961 by filing Form No. 68 or otherwise.

Issue (i): Whether the penalty under section 270A of the Income-tax Act, 1961 was rightly imposed for under-reporting of income.

Analysis: The assessee did not file the return under section 139(1) and filed a return only after issuance of notice under section 148. The Assessing Officer computed under-reported income and tax, and levied penalty under section 270A read with section 274. The record shows absence of any contemporaneous production of an immunity application before the Assessing Officer during penalty proceedings. The assessee's submissions about subsequent filings and rectification under section 154 were examined, but the materials relied upon did not contain an acknowledgment or verification establishing an effective filing of immunity application on the ITBA portal. The assessee's contention of a technical glitch was not substantiated by documentary proof before the Tribunal.

Conclusion: The penalty imposed under section 270A of the Income-tax Act, 1961 is justified and sustainable; this issue is decided against the assessee and in favour of the Revenue.

Issue (ii): Whether the assessee is entitled to immunity from penalty under section 270AA of the Income-tax Act, 1961 by filing Form No. 68.

Analysis: To obtain immunity under section 270AA, the assessee must file the application in the manner and within the time permitted and produce credible evidence of such filing. The record does not establish that Form No. 68 was validly filed and acknowledged online or that any order under section 270AA(4) was passed in favour of the assessee. The alleged manual filing and communications with departmental officers were not supported by documentary acknowledgment or dispositive orders proving compliance with statutory requirements for immunity.

Conclusion: The assessee is not entitled to immunity under section 270AA of the Income-tax Act, 1961; this issue is decided against the assessee and in favour of the Revenue.

Final Conclusion: The Tribunal upholds the penalty under section 270A of the Income-tax Act, 1961 and rejects the claim for immunity under section 270AA, resulting in dismissal of the assessee's appeal.

Ratio Decidendi: Where the assessee fails to produce reliable documentary evidence of valid filing and acknowledgment of an immunity application under section 270AA, the claim for immunity cannot succeed and a penalty under section 270A may be sustained for under-reporting of income.

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