TaxTMI 
TaxTMI 
2026 (1) TMI 810
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....rovisions of section 147 of the Act and accordingly notice u/s 148 of the Act was issued. The assessee in response to the same filed the return declaring total income at Rs. 70,13,970/-. the Assessing Officer issued notices u/s 142(1) and 143(2) of the Act to the assessee in response to which the assessee filed the requisite details from time to time. Thereafter, the Assessing Officer accepted the returned income. However, the Assessing Officer initiated penalty proceedings u/s 270A of the Act for under-reporting of income. Accordingly, a show cause notice u/s 274 r.w.s. 270A of the Act was issued and served on the assessee in response to which the assessee made her submissions. She also filed an application for grant of immunity in Form No.68. The assessee filed a copy of challan evidencing the payment of such tax. 4. However, the Assessing Officer was not satisfied with the submissions of the assessee. He noted that although the Assessing Officer has accepted the returned income declaring total income of Rs. 70,13,970/-, however, the assessment proceedings in this case were completed u/s 147 r.w.s. 144B of the Act. The income declared by the assessee is more than the maximum a....
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....the competent authorities and are to be verified by them and on satisfaction the decision to grant the immunity or reject the application is to be taken by the competent authority. In case the relevant valid immunity is received by the appellant then the impugned penalty is liable to be deleted. The appellant has not made any cogent and verifiable submissions along with supporting evidences as to why the return income was not filed originally even when the huge taxable income was earned by the appellant. Clause (b) of the Section 270A(2) clearly provides that there is under reporting of income where "(b) the income assessed is greater than the maximum amount not chargeable to tax, where no return of income has been furnished or where return has been furnished for the first time under section 148;" The appellant was a non-filer and did not file the return of income despite of having large income under different heads of income and only disclosed the income and filed the return of income only after the reopening notice under section 148 of the Act was issued and served. No bona fide and compelling and genuine reasons have been furnished along with supportin....
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....yee cheque or account payee demand draft, then the penalty may not be levied. By not filing the return of income originally under section 139 of the Act, it was the claim of the appellant that notaxable income was earned. However this claim was found to be incorrect. If assessee makes a claim which is not only incorrect in law, but is also wholly without any basis and explanation furnished by him for making such a claim is not found to be bona fide, Explanation-1 to section 271(1)(c) would come into play and assessee will be liable to penalty. [CIT v Zoom Communication (P) Ltd, 327 ITR 510(Del)]. Further, if the assessee is not able to substantiate his explanation and such explanation is not bonafide, then also deeming provision of concealment will come into picture. Mensrea not essential for civil liability of penalty- penalties under fiscal statues are for breach of civil liabilities- willful concealment is not an essential ingredient for attracting civil liability as is the case in the matter or prosecution u/s 276C. (Union of India Vs. Dharmendra Textile processors (SC) 306 ITR 277). (Guljag Industries Ltd. Vs CTO (SC) 293 ITR 584).(CIT vsAtul Mohan B....
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...., therefore, the Assessing Officer was required to pass an order either granting or rejecting the immunity within a period of one month from the end of the month in which the immunity application was filed by the assessee u/s 270AA(1) of the Act. However, the Assessing Officer in the instant case has not passed any such order. Therefore, the assessee cannot be held responsible. 8. Referring to the decision of Hon'ble Delhi High Court in the case of Nirman Overseas Pvt. Ltd. Vs. NFAC vide W.P(C) No.5839/2022 & CM Appls.17517-17518/2022, order dated 08.04.2022, he submitted that under identical circumstances the Hon'ble High Court has directed the Assessing Officer to grant immunity u/s 270AA of the Act to the petitioner and the penalty so levied was directed to be deleted. 9. Referring to the decision of Hon'ble Delhi High Court in the case of Ultimate Infratech Pvt. Ltd. Vs. NFAC & Anr. vide W.P(C) No.6305/2022 & CM Appls.18990-18991/2022, order dated 20.04.2022, he submitted that the Hon'ble High Court following the earlier decision has directed the Assessing Officer to grant immunity u/s 270AA of the Act. He also relied on various other decisions filed in the paper book. ....
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....after the expiry of the period of filing the appeal as specified in clause (b) of sub-section (2) of section 249, grant immunity from imposition of penalty under section 270A and initiation of proceedings under section 276C or section 276CC, where the proceedings for penalty under section 270A has not been initiated under the circumstances referred to in sub-section (9) of the said section 270A. (4) The Assessing Officer shall, within a period of one month from the end of the month in which the application under sub-section (1) is received, pass an order accepting or rejecting such application: Provided that no order rejecting the application shall be passed unless the assessee has been given an opportunity of being heard. (5) The order made under sub-section (4) shall be final. (6) No appeal under section 246A or an application for revision under section 264 shall be admissible against the order of assessment or reassessment, referred to in clause (a) of sub-section (1), in a case where an order under sub-section (4) has been made accepting the application." 12. We find although the assessee has filed Form No.68 as per sub-section (1) of sect....