2026 (2) TMI 163

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....ion is filed by the Petitioner to quash and set aside the impugned order dated 20th March, 2025 passed by Respondent No. 1 under Section 264 of the Income Tax Act, 1961 and also the Penalty Order dated 29th January, 2024 passed by Respondent No.2 under Section 270A of the IT Act. 2. The short point in the present case is whether the penalty could have been levied under Section 270A in the light....

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....he IT Act. It is on this basis that the Petitioner seeks the quashing of the penalty Order dated 29th January, 2024. As far as the Order passed by Respondent No. 1 under Section 264 is concerned, it is challenged on the basis that the said Order is virtually a non-speaking order and does not take into consideration either the provisions of Section 270A(6) or Section 270A (2) of the IT Act. Accordi....

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....essee offers an explanation and the Assessing Officer or the Joint Commissioner (Appeals) or the Commissioner (Appeals) or the Commissioner or the Principal Commissioner, as the case may be, is satisfied that the explanation is bona fide and the assessee has disclosed all the material facts to substantiate the explanation offered. In the present case, the explanation offered by the Petitioner is t....

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....ellate Order, is not greater than the income processed under Section 143(1) (a). On this count also, atleast prima facie, we find that no penalty proceedings could have been initiated or any order passed under Section 270A of the IT Act. We, therefore, find that a strong prima facie case is made out for grant of ad-interim relief. Accordingly, there will be ad-interim relief staying the operation ....