TaxTMI 
TaxTMI 
2025 (5) TMI 2210
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....sessee was duly knowing the fact that the payments of Interest on R & R Charges amounting to Rs. 14,40,051/-, payments of Interest on Royalty amounting to Rs. 55,07,963/-, payments of Mines and Geology Charges amounting to Rs. 2,68,56,668/-, payments of R and R Charges amounting to Rs. 26,85,668 were not paid before the due date for furnishing the return of income of the previous year under section 139(1) of the I.T. Act., the assessee had claimed the above mentioned payments in the ITR which makes it evident that the assessee has misreported the income during filing Return of Income." 3. The assessee has raised the following grounds of cross objection in CO No. 16/Del/2024: "1. That Ld. CIT(A) has erred in law by not deciding on our alternative grounds of appeal (total five grounds). 2. That Ld. CIT(A) has erred in law by not deciding on calculation of misreported income keeping in view the specific provision of section 270A(3) (ii). 3. That Ld. CIT(A) has erred in law by not deciding on calculation of tax payable keeping in view the specific provision of section 270A(10)(c). 4. That Ld. CIT(A) has erred in law by not deciding on acceptance o....
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....orted the income is wrong and it is evident from plain reading of section 270(A) (2) (a). 2. That the calculation of under reported income is not done according to provision of section 270A(3)(ii) which is reproduced below: "The amount of under reported income shall be: (ii) In any other case, the difference between the amount of income assessed, recomputed and the amount of income assessed, reassessed or re-computed in a preceding order." Here, the income assessed by your order dated 26.12 2019 is Rs. 16,92,495/- and the income assessed in order u/s 143(1)(a) which is the preceding order is also Rs. 16,92,495/ -. So, the difference between the two orders is zero i.e. misreported income is zero. When the misreported income is zero there cannot be tax payable on misreported income. Calculation of tax payable on under reported income is not done according to the specific method provided in section 270A(10)(c) is also zero. Provisions of law reproduced below for your ready reference: "The tax payable in respect of the under reported income shall be- (c) in any other case, determined in accordance with the formula-....
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....ice on 19.07.2023. Notice dated 19.07.2023 was replied on 03.08.2023, which is available on e-proceeding facility. However, we are again enclosing the same. No fresh submission is being made. We are enclosing herewith the copy of intimation under section 143(1) (a) and assessment order under section 143(3) for your ready reference. In continuation of our submissions on 03.08.2023, we would like to further submit as under: - The AO issued notice under section 274 read with section 27OA s ta ting that "you have under reported income which is in consequence of misreporting thereof" but failed to substantiate how income was under reported, if underreported how the same was in consequence of misreporting thereof, keeping in view the provisions of Section 270A(2)(a) which defines under reporting. Ld. AO failed to adjudicate how the income is misreported under section 270A(2) (a). Notice do not mention under which limb of section 270A(9) the under reporting is in consequence of misreporting. 2. Without prejudice to our submission in para 1 above, the AO failed to adjudicate how this is a case of misreporting keeping in view the specific provisi....
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.... ................. ................. (3) The amount of under-reported income shall be- (i) in a case where income has been assessed for the first timer- (a) if return has been furnished, the difference between the amount of income assessed and the amount of income determined under clause (a) of sub-section (1) of section 143; (8) Notwithstanding anything contained in sub-section (6) or sub- section (7), where under-reported income is in consequence of any misreporting thereof by any person, the penalty referred to in sub-section (1) shall be equal to two hundred per cent of the amount of tax payable on underreported income. (9) The cases of misreporting of income referred to in sub-section (8) shall be the following, namely: - (a) misrepresentation or suppression of facts; (b) failure to record investments in the books of account; (c) claim of expenditure not substantiated by any evidence; (d) recording of any false entry in the books of account; (e) failure to record any receipt in books of account having a bearing on total income; and (f) failure to report any international....