2026 (3) TMI 372

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....sessment Unit Income-tax Department (for brevity the 'Ld. AO') order passed under section 270A of the Act date of order 20.02.2024. 2. The brief facts of the case are that the assessee is a salaried individual employed with "Trejhara Solutions Limited' during the year. The assessee filed its original return of income on 31.08.2019 declaring income of Rs. 35,91,520/-. A search and survey action u/s. 132/133A of the Act was conducted by DDIT (Inv.), FAIU3(1), Mumbai on 22.03.2022 in the cases pertaining to the Mr. Niranjan Hiranandani, Mr. Surendra Hiranandani and their related Group entities/persons. The assessee was also covered in the Search action-initiated u/s 132 of the Act. Accordingly, the case of the assessee was re-opened u/s....

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....ouse Rent Allowance u/sec. 10(13A) 5,24,174/- 200 Misreporting 2 Donation to political party u/sec. 80GGC 62,400/- 200 Misreporting   Total 5,86,574/-     Thereafter, in accordance with the provisions of section 270AA(2) of the Act, the assessee filed Form No. 68 electronically on 18.06.2023 before the Ld. AO, seeking grant of immunity from penalty under section 270A of the Act. Bu the Ld. AO proceeds to impose penalty U/s 270A of the Act. Aggrieved by the above, the assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) upheld the impugned penalty order. Being aggrieved assessee filed an appeal before us. 3. The Ld. AR advanced his submissions and filed a paper book com....

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....position of penalty within time, it was incumbent upon the Ld. AO to pass an order within one month from the end of the month in which the application seeking immunity was filed, which has not been done in this case. Further, neither in the assessment/penalty order nor even in the appeal order of the Ld. CIT(A) has it been specified as to under which clause of sub-section (9) the assessee's case was falling so as to treat it as misreporting of income referred to in sub-section (8) of section 270AA. Since the assessee had substantively complied with the provision of section 270AA by not contesting the order and had paid the tax and interest payable and no appeal against the order referred to in clause (a) of sub-section (1) of section 27....

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....2) of the Act, seeking immunity from imposition of penalty under section 270A. The assessee also intimated the Ld. AO of the said compliance vide letter dated 20.06.2023. On perusal of the record, we find that the assessee has complied with all the statutory conditions prescribed under section 270AA(1) and (2) of the Act, namely: (i) payment of the tax and interest as per the assessment order within the stipulated time, (ii) filing of the prescribed application in Form No. 68 within the time allowed, and (iii) non-filing of any appeal against the assessment order. However, the Ld. AO neither passed any order rejecting the application under section 270AA(4) nor assigned reasons as to why the assessee was not entitled to immunity. Instead, th....