2024 (7) TMI 398

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....reciating that the said levy of penalty was not justified in law. 2. The learned CIT failed to appreciate that before the CIT, the assesses had duly explained that under-reporting in consequence of mis-reporting in his case was attributable to wrong action of tax consultant and all the material facts relating thereto along with substantiating evidences in form of complaint filed against Tax Consultant before Economic Wing of Police Department etc. were also furnished by the assesses and therefore, the levy of penalty u/s 270A without rebutting the explanation offered by the assesses was not justified in view of provisions of the said Act. 3. The learned CIT ought to have appreciated that the bona fides of the explanation offered by asse....

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.... assessed income & income shown in revised return. Assessee furnished reply to penalty notice but being unsatisfied the Assessing Officer vide order dated 22-08-2023 imposed penalty of Rs. 1,61,548/- on the assessee u/s 270A(9)(a) of the IT Act being 200% of the differential tax for underreporting of income in consequence of misreporting. 4. In first appeal LD CIT(A)/NFAC, after considering the reply of the assessee, dismissed the appeal of the assessee & confirmed the levy of penalty. 5. Being aggrieved by the decision of ld. CIT(A)/NFAC, the assessee is in appeal before this Tribunal. 6. LD AR submitted before us that LD CIT(A)/NFAC was not justified in confirming the penalty u/s 270A(9)(a) of the IT Act. It was further submitted that ....

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..../s 270A was initiated & no sub section or clause was mentioned. When the notice dated 21.03.2023 for imposition of penalty was issued no particular sub section/ clause / limb was mentioned in the notice, instead only penalty u/s 270A was mentioned. Under the above facts & in the circumstances of the case it was submitted by the counsel of the assessee that in the absence of mention of particular limb of the relevant sub section of section 270A of the IT Act in the notice, the assessee was not in a position to reply for the same, because until and unless the assessee knows as to under which limb the penalty is going to be imposed, he is unable to file his specific reply regarding that particular limb which is attracted in his case as per the....

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.... the assessee during the year. However, in the assessment order the penalty u/s 270A was initiated for under reporting of income in consequence of misreporting. Thereafter a show cause notice for imposing penalty u/s 270A was issued on 21-03-2023, which reads as under :- "Notice for penalty under section 274 read with section 270A of the Income-tax Act 1961 Ms/Mr/M/s, Whereas in the course of proceedings for assessment year 2018-19, it appears that you have under-reported income which is in consequence of misreporting thereof as per details given in the assessment order. 2. You are required to show cause why an order imposing penalty u/s 270A of the Income-tax Act 1961 should not be passed." 9. From perusal of above penalty notice ....