TaxTMI 
TaxTMI 
2025 (8) TMI 428
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..... The grounds of appeal are as under: 1. In the facts and circumstances of the case and in law, the learned CIT[A] NFAC erred in confirming & the Learned CIT[A] erred in levying penalty of Rs. 29,88,820/- u/s 270A being 200% of tax payable on underreported income in consequence of misreporting and even though the assessed income u/s 143[3] was less than income processed u/s 143[1]. 2. In the facts and circumstances of the case and in law, the CIT[A] erred in levying penalty u/s 270A on the basis of notice wherein no specific charge of either filing of underreporting or misreporting of income was mentioned and thereby passing the order of penalty which is to be quashed as per recent judgement of Bombay High Court and Suprem....
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....d circumstances of the case CIT[A] erred in initiating penalty second time even when penalty initiated by the AO was in abeyance and subsisting therefore bad in law because the CIT[A] had no power in this case." 4.1 It is contented that vide separate notices dated 05.04.2021 and 21.02.2022, the Assessing officer had already issued notices under section 274 read with section 270A of the Act, asking the assessee to show cause as to why an order imposing penalty on you should not be made under section 270A of the Act, as it appeared to him in the course of assessment proceedings for AY 2018-19 that there was under reporting/misreporting of income. It is stated that in response, the assessee had requested the AO to keep the proceedings in ab....
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.... 7.1 page-4 of the order has dealt with the jurisdictional issue and based on a decision of co-ordinate bench in the case of Shri Ajit Ramchandra Jadhav in ITAT No.2104/PUN/2013, has concluded that the authority who is satisfied about the initiation of penalty proceedings, is required to initiate penalty proceedings and only that authority can levy the penalty. He went on to hold that in the present case, the satisfaction for initiation of penalty u/s 270A with regard to the amount of Rs 47,89,785/- was of Commissioner of Appeals. Therefore, penalty u/s 270A corresponding to the income could be levied by him only. Thus, he imposed the penalty. 5. Per Contra, Ld.DR relied on the penalty order of the Ld. CIT(A). 6. We have heard the riv....
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....the charge of under-reporting as well as the quantum of penalty proposed to be levied for such charge. Therefore, he should be communicated the charge of under-reporting as well as the reason or quantum of levying penalty. The Assessing officer must direct initiation of penalty under Section 270A of the Act while passing the assessment/reassessment order and thereby, assume jurisdiction. The issue of show-cause notice is the starting point of penalty proceedings and the initiation in the absence of such notice assumes great importance especially in the context of time-limit prescribed under section 275. Since proper initiation of penalty proceeding is the foundation of jurisdiction in the matters of penalty, strict observance of the same is....