2025 (8) TMI 1524

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....levy of penalty under Section 270A of the Income Tax Act, 1961 (hereinafter referred to as the "Act") and relates to Assessment Year (A.Y.) 2018-19. 2. Ground raised by the assessee read as under: "1. The learned CIT(A) erred in law and on facts in confirming the penalty of Rs. 10,61,360/- imposed by the AO under section 270A of the Income Tax Act, 1961, such penalty is requested to be deleted." 3. The facts of the case are that in the assessment framed u/s. 143(3) of the Act addition was made to the income of the assessee amounting to Rs. 25,76,114/- disallowing assessee's claim of exemption of capital gains u/s. 54F of the Act. Thereafter, penalty u/s. 270A of the Act was initiated, notice issued to the assessee and order p....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....der passed u/s. 143(3) of the Act, the AO initiated penalty u/s. 270A of the Act for misreporting of income, he issued notices for both the defaults of underreporting and misreporting of income. Copy of the notice issued u/s274 of the Act dated 1604-21, initiating penalty proceedings was filed before us demonstrating the aforestated fact. He thereafter pointed out that in the penalty order passed u/s. 270A of the Act, the AO levied penalty again for both the defaults i.e "under reporting And under reporting as consequence of mis-reporting". 7. The Ld. DR, however countered by the same by pointing out that there was no confusion in the mind at all of the AO. He pointed out that the AO had noted, while disallowing the assessee's claim of e....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of penalty i.e under reporting of income and under reporting as a consequence of misreporting. While the first default attracts penalty at a lesser rate @50% of the tax payable on the under reported income, the other charge being a more serious charge of under reporting as a consequence of misreporting, attracts penalty @200% of the tax payable on the misreported income. The above position of law is not disputed. 9. Having said so, it is a fact on record that the AO while levying penalty has failed to identify the specific charge or default for levying penalty. The notice initiating penalty proceedings issued u/s 274 of the Act and the penalty order reveals that he levied penalty both for under reporting and under reporting as a consequ....