2025 (12) TMI 1519

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....rming the penalty order passed u/s 270A of the Act. 2. The grounds of appeal are reproduced as under: "(a) On the facts and circumstances of the case and in law the Ld. CIT(A) at NFAC, Delhi erred in confirming the penalty u/s 270A of the Act imposed by the Assessment Unit of the National Faceless Assessment Centre. (b) The order being arbitrary, fallacious, and unwarranted must be quashed with directions for appropriate relief. " 3. Brief facts of the case are that the assessee had filed return for A.Y. 2022-23 on 07.10.2022, declaring income of Rs. 77,09,300/-. The case was selected for scrutiny during the course of which the Ld. AO noted some discrepancies in the purchase transactions made with M/s. Manish Oversea....

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....ions: "3.2.4 On considering the facts of the case and submission of appellant, it is observed that during the assessment proceedings, an addition of Rs. 17,13,600/- was made by the AO vide order dated 18.03 2024 and further, penalty u/s 270A was initiated for furnishing under reported of income in consequence of misreporting of Income, In compliance to the same, the appellant paid due tax with interest as per section 270AA along with Form-68 as prescribed on 20.042024. Further, on Scrutinizing the penalty order, it is observed that in para 1st of the same the AO stated that "..... the excess purchase of Rs. 17.13,600/- has been disallowed and penalty proceedings on this for under reporting in consequences of misreporting of income ....

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....e dismissed." Further aggrieved, the assessee has filed an appeal before the Tribunal. 4. Before us, the Ld. AR has vehemently argued that the assessee was entitled to get immunity from imposition of penalty u/s 270AA of the Act as at the time of passing the assessment order and even in the show-cause notice issued for the penalty, there is no mention of section 270A(9) of the Act and, it is only mentioned at the time of passing order. Accordingly, the assessee, under a bonafide belief and in order to buy peace, had filed an application in Form 68, seeking immunity u/s270AA even though there was no under-reporting/mis-reporting of income on the part of assessee and the transaction had been fully explained during the course of assessme....

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....) failure to record any receipt in books of account having a bearing on total income; and (f) failure to report any international transaction or any transaction deemed to be an international transaction or any specified domestic transaction, to which the provisions of Chapter X apply. " 7. From the discussion in the assessment order and the explanation filed by the assessee during the course of assessment proceedings, it is seen that there is no case of misrepresentation or suppression of facts as envisaged in clause (a) of section 270A(9) of the Act. In fact, the assessee has duly explained the discrepancy arising due to purchase returns which was, however, not accepted by the Ld. AO and the addition of this account was made du....