TaxTMI 
TaxTMI 
TaxTMI 
2023 (7) TMI 346
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....d of appeal relates to confirming the action of Assessing Officer in levying penalty of Rs. 1,04,600/- under Section 270A of the Income Tax Act, 1961 (in short, the Act). 2. Brief facts of the case are that the assessee is an individual, retired from Dakshin Gujarat Vij Company Limited. The assessee filed his return of income for A.Y. 2018-19 on 16/07/2018 declaring income of Rs. 5,30,025/-. The case of assessee was selected for scrutiny. Assessment was completed under Section 143(3) of the Act on 15/01/2021. The Assessing Officer while passing the assessment order, made addition on account of interest received from bank of Rs. 42,550/- and addition of leave encashment of Rs. 6,48,025/-. The Assessing Officer made addition of interest inco....
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....9,48,830/- thereby made addition of Rs. 6,48,830/- and initiated penalty for misreporting of income. The Assessing Officer issued show cause notice for levy of penalty under Section 270A read with section 274 of the Act vide notice dated 15/01/2021 to file reply on or before 01/02/2021. The Assessing Officer recorded that no reply was furnished by assessee despite giving one more opportunity. The Assessing Officer thereby levied the penalty of Rs. 1,04,600/- being 200% of tax liability on the total addition of Rs. 6,91,380/- (648,830 + 42,550). The order of penalty was passed with prior approval of Joint Commissioner of Income Tax. 3. Aggrieved by the order of penalty, the assessee filed appeal before the ld. CIT(A). Before the ld. CIT(A),....
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....g a view that after going through the record he was of the view that the Assessing Officer has rightly levied the penalty as no compliance was received from assessee despite repeated notices. Further aggrieved, the assessee has filed present appeal before the Tribunal. 5. I have heard the submissions of the learned Authorised Representative (ld. AR) of the assessee and the learned Senior Departmental Representative (ld. Sr. DR) for the revenue. The ld. AR of the assessee submits that the Assessing Officer while passing the assessment order, initiated penalty proceedings under Section 270A of the Act and allegedly issued show cause notice under Section 274 r.w.s. 270A of the Act. The assessee was not aware about penalty proceedings and coul....
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....inary meaning suggest culpability or existence of guilty mind. The burden lies on the department to prove that the assessee has malice intention to invade tax and the case falls in six categories of sub-section (9) of Section 270A of the Act. It is for the revenue to prove that there is misrepresentation, suppression, failure and falsify in terms of six cases of misreporting. Neither during the course of assessment order nor in penalty proceedings, the revenue has discharged its onus to specify and prove the para meters of the said provisions. The ld. AR of the assessee submits that the assessee was under impression that he is a senior citizen and interest income is not to be shown in the return of income being eligible for deduction under ....
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....ection 270A(9) of the Act. Clause (a) is also not applicable as there is no misrepresentation or suppression of facts as has been held by the Tribunal in Parasben Jivanbhai Vadhiya Vs DCIT in ITA No. 47/Srt/2023 and that explanation is bonafide within the scope of sub-section (6) of Section 270A of the act. The assessee has disclosed all the material facts. The assessee has disclosed all material facts, thus the penalty under Section 270A cannot be levied. 7. In alternative submission, the ld. AR of the assessee submits that the Assessing Officer has not specified the misreporting by pinpointing from item (a) to (f) of Section 270A(9) of the Act either in the assessment order or in penalty order. If the Assessing Officer failed to mention ....
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....hment of Rs. 6,48,025/-. The Assessing Officer initiated penalty for misreporting on this component of addition in the income. However, while passing the penalty order, the Assessing officer levied penalty on both the addition for misreporting of income of Rs. 6,91,380/- (42,550 + 6,48,380) and computed/worked out penalty @ 200% of tax liability. I find that with regard to addition of interest income the assessee explained that he was under impression that being retired person he is senior citizen and interest income is exempt under section 80TTB, thus, I find merit in the submissions of ld AR for the assessee. Moreover, the assessing officer initiated penalty on interest income for under reporting of income, however, at the time of levying....