2025 (9) TMI 720

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... The assessee has raised the following grounds in appeal:- 1. Asstt. Framed u/s 270A is unsustainable in law as well as on merits. 2. Asstt. Framed 270A is without jurisdiction. 3. That no proper and reasonable opportunity of hearing has been allowed. 4. That under the facts and circumstances of the case, no penalty of Rs. 1,49,586/- should have been levied. 5. That without prejudice that no penalty on debatable issue should have been levied. 6. That under the facts and circumstances of the case, the Ld. CIT(A) erred in law in enhancing the amount of penalty levied without issuing any enhancement notice. 3. The brief facts of the case are that the assessee filed his regular return of ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....yees contribution amounting to Rs. 1,75,567/- and Rs. 7,09,369/- respectively for ESI and PF payment on or before the due date. A show cause notice u/s 274 of the Act read with section 270A of the Act was issued. After considering the explanation submitted by the assessee the Assessing officer levied the penalty of Rs. 1,49,586/- against the assessee. 4. Aggrieved by the order of the AO, the assessee filed the appeal before the Ld. CIT(A), the Ld. CIT(A) vide his order dated 27-02-2025 dismissed the appeal of the assessee by observing as under : "Appellant's only contention that there is no concealment of income is misplaced because under new provisions u/s 270A of the Act, such requirement is done away with. Form AY 2017-18 the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... (iii) ITA No. 1478/Chny/ 2024 Srinivasan Chandraekara Chandilya vs. Asst. Commissioner Of Income Tax Non- Corporate Circle -7(1) Chennei 6. Ld. DR relied the orders of the lower authorities and submitted that penalty was rightly levied on the assessee. 7. We have heard the revival contention and gone through the material available on record. In this case an assessment order was passed u/s 143(3) of the Act dated 29-03-2022 determining total income of Rs. 11,64,08,504/- after making an addition 8,84,936/-on account of disallowance for late payment of Employee Contribution to PF & ESI and Rs. 73,948/- on account of disallowance u/s 37 of the Act. The AO recorded the satisfaction for the initiation of penalty u/s 270A of the Act. The ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....stances where the income shall be held to be under reported. However the under -reporting is held to be misreporting of income. This is dealt in sub-section (8) of the Act. In the instant case, the AO has held the additional income determined in the assessment proceeding by the department as under-reporting of income and accordingly, levied penalty under section 270A of the Act." 9. In the instant case the AO has made the addition of Rs. 8,84,936/-on account of late payment of Employees Contribution to PF & ESI. We observe from the record that disallowance regarding late deposits of Employees contribution towards PF & ESI were adequately disclosed in the tax audit report. In the instant case, the return of income for the impugned year i.....