Reasonable Cause for Late Return: penalty under section 271(1)(c) unsustainable where disclosure, audit filing and voluntary offer showed no concealme...
Penalty under section 270A for under-reporting or misreporting is valid only when the exact statutory limb under section 270A(2) is specifically identified in the notice and the penalty order. Where the Assessing Officer failed to specify the applicable clause, the foundation of the penalty proceedings was treated as defective. Relying on the jurisdictional High Court ruling in Schneider Electric South East Asia, the Tribunal treated the proceedings as bad in law, quashed the notice and penalty order, and deleted the penalty.
Penalty under section 270A for under-reporting or misreporting is valid only when the exact statutory limb under section 270A(2) is specifically identified in the notice and the penalty order. Where the Assessing Officer failed to specify the applicable clause, the foundation of the penalty proceedings was treated as defective. Relying on the jurisdictional High Court ruling in Schneider Electric South East Asia, the Tribunal treated the proceedings as bad in law, quashed the notice and penalty order, and deleted the penalty.
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