TaxTMI 
TaxTMI 
2026 (5) TMI 1276
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.... Tax Act. 2. The brief facts of the case are that the assessee had filed its return of income for A.Y. 2020-21 on 15.02.2021 declaring total income of Rs. 1,02,94,246/- before claiming deduction u/s. 80IA of the Act. The assessee had claimed deduction of Rs. 1,22,96,427/- u/s. 80IA of the Act in respect of 5MW Solar Power Plant at village Bhadla in Jodhpur district of Rajasthan, which had commenced production in the month of May 2018. The return was processed u/s. 143(1)(a) of the Act and the deduction claimed u/s. 80IA of the Act was disallowed. Thereafter, the case was selected for complete scrutiny wherein the disallowance claimed u/s. 80IA was again denied and the assessment was completed u/s. 144 r.w.s. 144B of the Act on 22.09.2022....
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....hri Anil Khabya, the Ld. AR of the assessee submitted that the claim for deduction u/s. 80IA was disallowed while processing the return u/s. 143(1)(a) of the Act. Thus, the income as determined in the intimation u/s. 143(1)(a) of the Act was accepted by the AO while completing the assessment u/s. 144 of the Act. In essence, no addition was made in the assessment order as completed by the AO. The Ld. AR submitted that the AO had wrongly taken "income as computed u/s. 143(1)(a)" at Rs. Nil, while working out the penalty, whereas income as per intimation u/s. 143(1) was Rs. 1,02,94,250/-. The Ld. AR has drawn our attention to provision of section 270A(3) of the Act, as per which the amount of underreported income is computed as the difference ....
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....y thereon. As per provision of section 270A(8) of the act, the quantum of penalty in respect of mis-reporting of income is 200% of amount of tax payable on underreported income. As regarding working out the under-reported income, the provision of section 270A(2) and (3) are relevant, which are reproduced below: (2) A person shall be considered to have under-reported his income, if- (a) the income assessed is greater than the income determined in the return processed under clause (a) of sub-section (1) of section 143; (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; ....
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....- (A) the amount of income assessed, in the case of a company, firm or local authority; and (B) the difference between the amount of income assessed and the maximum amount not chargeable to tax, in a case not covered in item (A); (ii) in any other case, the difference between the amount of income reassessed or recomputed and the amount of income assessed, reassessed or recomputed in a preceding order: Provided that where under-reported income arises out of determination of deemed total income in accordance with the provisions of section 115JB or section 115JC, the amount of total under-reported income shall be determined in accordance with the following formula- (A - B) + (C - D) where, ....
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....ause (a) of section 270A(2) of the Act, a person is considered to have under-reported his income if the income assessed is greater than the income determined in the return processed u/s. 143(1)(a) of the Act. Similarly, the provision of section 270A(3) stipulates that the under-reported income shall be the difference between the amount of income assessed and the amount of income determined u/s. 143(1)(a) of the Act. Thus, the amount of under-reported income in the present case was to be determined on the basis of income as assessed u/s. 144 r.w.s. 144B of the Act dated 22.09.2022 (Rs. 1,22,96,427/-) and the income determined u/s. 143(1)(a) of the Act (Rs. 1,02,94,250/-). There is no dispute to the fact that the income determined as per the ....