2022 (6) TMI 130

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....f Rs.2,50,78,168/-. The petitioner also seeks a direction to Respondent No. 1 to grant immunity under Section 270AA of the Act to the Petitioner from imposition of penalty and prosecution under Section 270A of the Act in respect of the income assessed vide assessment order dated 30th April, 2021 for the Assessment Year 2018-19. 2. By way of the impugned order, dated 28th March, 2022, the Respondent no.1 levied a penalty of Rs.2,50,78,168/- under section 270A of the Act alleging misreporting of income. 3. Learned counsel for the Petitioner submits that no independent order under section 270AA(4) of the Act has been passed by the Respondent on the application filed by the Petitioner seeking immunity under section 270AA of the Act. In th....

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....rmation, documents and figures submitted by the Petitioner had been accepted by the Respondents and the subject matter of dispute is a pure estimation of disallowance under section 14A of the Act. He further submits that even otherwise this issue of disallowance under section 14A of the Act does not fall in any of the limb of "misreporting" of income stated in section 270A (9) of the Act. 5. Issue notice. Mr. Sanjay Kumar, learned senior standing counsel accepts notice on behalf of the Respondents. He relies on the impugned order dated 28th March, 2022 to contend that the Petitioner is not entitled to the benefit of immunity under Section 270AA of the Act. He submits that the assessee in the present case did not make the correct disallow....

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....nt order framed by Respondent No.1 was actually voluntary computation of income filed by the Petitioner to buy peace and avoid litigation, which fact has been duly noted and accepted in the assessment order as well and consequently, there is no question of any misreporting. 9. This Court is further of the view that the impugned action of Respondent No.1 is contrary to the avowed Legislative intent of Section 270AA of the Act to encourage/incentivize a taxpayer to (i) fast-track settlement of issue, (ii) recover tax demand; and (iii) reduce protracted litigation. 10. Consequently, the impugned order dated 09^th March, 2022 passed by Respondent No.1 under Section 270AA (4) of the Act is set aside and Respondent No.1 is direc....