2025 (5) TMI 358

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....ent : Shri Amit Katoch, Sr. DR ORDER PER PRADIP KUMAR KEDIA, AM : The captioned appeal has been filed at the instance of the assessee seeking to assail the First Appellate order dated 10.09.2024 passed by Commissioner of Income Tax (A), National Faceless Appeal Centre ("NFAC"), Delhi ["CIT(A)"] under s. 250 of the Income Tax Act, 1961 ["the Act"] arising from the assessment order dated 11....

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....8,97,477/- comprising of bank charges, printing and stationary etc. during Financial Year which were claimed to be necessary for survival of the business and has no connection with exempt income per se and hence, there is neither under-reporting nor mis-reporting of any income per se. The AO has invoked the provision of s.270A as an automatic consequence on mere disallowance of expenditure in ster....

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.... to invoke Section 270A, the entirety of circumstances must reasonably point to the conclusion that the disputed amount represents income and the assessee has under-reporting the same. The Revenue in the instant case has computed an estimated disallowance under Section 14A solely due to existence of exempt income. It is not the case of the Revenue Authorities that assessee has, in fact, incurred a....

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....antum proceedings, such disallowance per se cannot invite rigors of penalty. Where all material facts relevant to the issue were placed on record, mitigating circumstances to disprove any culpability of any sort against the assessee is established by implication. 7. In CIT vs. Liquid Investment & Trading Co., ITA No.240/2009 judgment dated 05.10.2010, the Hon'ble Delhi High Court observed that ....