TaxTMI 
TaxTMI 
2023 (8) TMI 371
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....(NFAC), Delhi erred in not granting proper, sufficient and adequate opportunity of being heard to the Appellant while passing the appellate order. 2.2 It is submitted that, in the facts and the circumstances of the case, and in law, the appellate order so framed be held as bad and illegal, as: (1) The same is framed in breach of the principles of natural justice; and (ii) The same is passed without application of mind to the facts and the submissions brought on record by the Appellant. (iii) The same is passed without providing an opportunity of personal hearing 2.3 It is submitted that in the facts and the circumstances of the case, and in law, no such action was called for. 3 WITHOUT FURTHER PREJUDICE TO THE ABOVE The NATIONAL FACELESS APPEAL CENTRE (NFAC) erred in confirming the action of the A.O. in imposing penalty of Rs. 20,843/- u/s. 270A of the Act, on the ground of alleged under reporting of income. 3.2 It is submitted that in the facts and the circumstances of the case, and in law, no such addition was called for. 3.3 without prejudice to the above, assuming- but not admitting - that some add....
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....e return has been furnished for the first time under section 148]; (c) the income reassessed is greater than the income assessed or reassessed immediately before such reassessment; (d) the amount of deemed total income assessed or reassessed as per the provisions of section 115JB or section 115JC, as the case may be, is greater than the deemed total income determined in the return processed under clause (a) of sub-section (1) of section 143; (e) the amount of deemed total income assessed as per the provisions of section 115JB or section 115JC is greater than the maximum amount not chargeable to tax, where [no return of income has been furnished or where return has been furnished for the first time under section 148]; (f) the amount of deemed total income reassessed as per the provisions of section 115JB or section 115JC, as the case may be, is greater than the deemed total income assessed or reassessed immediately before such reassessment; (g) the income assessed or reassessed has the effect of reducing the loss or converting such loss into income. (3) The amount of under-reported income shall be,- (i) in a case where i....
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.... return or converting that loss into income, the amount of under-reported income shall be the difference between the loss claimed and the income or loss, as the case may be, assessed or reassessed. (4) Subject to the provisions of sub-section (6), where the source of any receipt, deposit or investment in any assessment year is claimed to be an amount added to income or deducted while computing loss, as the case may be, in the assessment of such person in any year prior to the assessment year in which such receipt, deposit or investment appears (hereinafter referred to as "preceding year") and no penalty was levied for such preceding year, then, the under-reported income shall include such amount as is sufficient to cover such receipt, deposit or investment. (5) The amount referred to in sub-section (4) shall be deemed to be amount of income under-reported for the preceding year in the following order- (a) the preceding year immediately before the year in which the receipt, deposit or investment appears, being the first preceding year; and (b) where the amount added or deducted in the first preceding year is not sufficient to cover the receipt, de....
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....e books of account; (c) claim of expenditure not substantiated by any evidence; (d) recording of any false entry in the books of account; (e) failure to record any receipt in books of account having a bearing on total income; and (f) failure to report any international transaction or any transaction deemed to be an international transaction or any specified domestic transaction, to which the provisions of Chapter X apply. (10) The tax payable in respect of the under-reported income shall be- (a) where no return of income has been furnished [or where return has been furnished for the first time under section 148] and the income has been assessed for the first time, the amount of tax calculated on the under-reported income as increased by the maximum amount not chargeable to tax as if it were the total income; (b) where the total income determined under clause (a) of sub-section (1) of section 143 or assessed, reassessed or recomputed in a preceding order is a loss, the amount of tax calculated on the under-reported income as if it were the total income; (c) in any other case, determined in accordance with the formula- ....
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...."misreporting" by the Revenue in the assessment order, for imposition of penalty makes the impugned order manifestly arbitrary. We are of the opinion that the entire edifice of the assessment order framed by AO was actually voluntary acceptance by assessee 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. 6. To further elaborate the issue with fetching support from judicial precedents on the facts and law of the matter we relied on following pronouncements of coordinate benches as under: "[2023] 147 taxmann.com 333 (Pune - Trib.) Jai balaji Business Corporation (P.) Ltd. v. ACIT Section 270A, read with section 43CA, of the Income-tax Act, 1961 - Penalty - For under-reporting and misreporting of income (General) - Assessment year 2017-18 - Assessee sold land at a price less than stamp duty value - Assessing Officer made addition on basis of difference between value declared by assessee and value determined by DVO - Consequently, Assessing Officer also imposed penalty under section 270A - It was noted that value determined by DVO was an estimat....
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....ection 43CA which has been brought into effect from 1-4-2021 was held to be applicable retrospectively. In such scenario, we place reliance on the doctrine enshrined in the judgment of the full bench decision of Hon'ble Supreme Court in the case of CIT v. Vatika Township (P.) Ltd. [2014] 49 taxmann.com 249/227 Taxman 121/367 ITR 466. The fact in this case was that search and seizure u/s 132 was conducted on 10-2-2001 pursuant to which the assessment order for the block period from 1-4-1989 to 10-2-2000 was passed on 28-02-2002 at a total undisclosed income of Rs. 85,00,000/-. The tax was charged as prescribed in section 113 of the Act. Subsequently, a proviso was inserted u/s 113 by the Finance Act, 2002 w.e.f. 01 -06-2002 to provide for levy of surcharge at 10%. The A.O took the view that the said amendment was clarificatory in nature and he levied surcharge by passing rectification order u/s 154 of the Act. However, the Tribunal and the Hon'ble High Court upheld the assessee's claim that the said amendment was prospective in nature and did not apply to block period falling before 01 -06-2002. However, the plea of the assessee was rejected by the Hon'ble Supreme Co....