Penalty for estimation of income and disallowances for tax non-deduction clarified: estimation-based penalties not sustainable; additions without conc...
Managerial remuneration disallowance under s.40A(2)(b) challenged over alleged tax-avoidance; appellate decision restored deletion of addition for dir...
Classification of imported goods as electronic cigarette versus tobacco product reversed for lack of proof; order set aside for jurisdictional overrea...
Section 270A requires the Assessing Officer to specify whether penalty is for under-reporting or misreporting, because each limb carries distinct consequences and different rates. Here, the notice alleged under-reporting, but the penalty was imposed at the higher misreporting rate without identifying the applicable clause under sub-section (9) or recording a clear finding of misreporting. As the relevant particulars had already been disclosed in the return, the Tribunal found no misreporting or under-reporting on the facts. The omission to specify the precise charge was fatal, and the penalty proceedings were vitiated and deleted.
Section 270A requires the Assessing Officer to specify whether penalty is for under-reporting or misreporting, because each limb carries distinct consequences and different rates. Here, the notice alleged under-reporting, but the penalty was imposed at the higher misreporting rate without identifying the applicable clause under sub-section (9) or recording a clear finding of misreporting. As the relevant particulars had already been disclosed in the return, the Tribunal found no misreporting or under-reporting on the facts. The omission to specify the precise charge was fatal, and the penalty proceedings were vitiated and deleted.
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