TaxTMI 
TaxTMI 
2024 (3) TMI 1547
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.... (NFAC) Delhi [hereinafter referred to as 'the CIT(A)'] for the Assessment Year 2018-19, whereby the Ld. CIT (A) had dismissed the appeal of the Assessee against the Order, dated 30/12/2021, levying penalty of INR 5,40,750/- under Section 270A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). 2. The Assessee has raised the following grounds of appeal: "1. On facts and circumstances of the case, the order passed by the CIT (A) is bad in the eyes of law. 2. The CIT (A) has erred in law and on facts in upholding the levy of penalty u/s 270A in respect of addition made under section 50C. 3. The CIT (A) has erred in law and on facts in upholding the levy of penalty u/s 270A in respect of addition m....
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....urnished all the relevant facts, documents/material including the sale agreement and the assessing officer has not doubted the genuineness and validity of the documents produced before him and the sale consideration received by the appellant. 9. The CIT (A) failed to appreciate that failure to voluntarily apply section 50C does not automatically attract penalty u/s 270A. 10. The appellant craves leave to add, amend, modify or alter the above grounds of appeal to any stage of appellate proceedings. 11. The appellant humbly prays that the appeal to be allowed in toto." 3. The relevant facts in brief are that the Assessee filed return of income for the Assessment Year 2018-19 on 23/09/2018. The case of the Assesse....
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....r. Accordingly, the Assessing Officer made an addition of INR 35,00,000/- to the returned income and initiated penalty proceedings under Section 270A of the Act for under-reporting of income. 4. During the penalty proceedings, the Assessee was filed reply stating that the demand raised by the Assessee has already been paid and therefore, the penalty be waived. However, the Assessing Officer concluded that merely paying of tax against the assessment order was not sufficient reason to escape from the penalty proceedings. The Assessee had accepted the addition made by the Assessing Officer and therefore, initiation of penalty proceedings was justified. Thereafter, the Assessing Officer, (vide order, dated 30/12/2021, passed under Section 27....
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....ngs, the Assessing Officer has accepted the additional income and agreed to pay tax on the same. However, vide order dated 19/06/2023, the CIT (A) reiterated the stand taken by the Assessing Officer and confirmed the levy of penalty under Section 270A of the Act. 6. Being aggrieved, the Assessee is now in appeal before us. 7. We have heard the rival contention and perused the material on record. 8. On perusal of record, we find that the Assessee had agreed to addition of INR 35,00,000/- and to discharge additional tax liability during the assessment proceedings as recorded by the Assessing Officer in paragraph 11 of the Assessment Order, dated 24/04/2021, passed under Section 143(3) read with Section 144B of the Act which read as u....
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....nsideration of the request for grant of immunity from the imposition of penalty under Section 270AA of the Act. On perusal of record, we find that the aforesaid averments made on behalf of the Assessee to be factually correct. The Assessee was entitled to make application and seek immunity from levy of penalty in terms of Section 270AA of the Act as the Assessee had agreed to the addition and made payment of additional tax liability within the period of 30 days. 11. Further, we note that in the present case, the penalty has been levied for under-reporting of income under Section 270A(7) of the Act. Section 270A(6)(a) of the Act excludes from the ambit of under-reported income, the amount of income (a) in respect of which the Assessee off....
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....sis of estimate made by the Valuation Officer in respect of the fair market value of the immovable property after comparing the same with the sale consideration of INR 2,10,00,000/-. We note that as per Section 270A(6)(c) of the Act under-reported income does not include the amount of under-reported income determined on the basis of an estimation, where an assessee has estimated a lower amount of addition on the same issue provided all facts material to addition have been disclosed by the Assessee. In the present case the Assessee is on a better footing. While the addition has been made on account of estimation of fair market value by the Valuation Officer, the income has been computed by the Assessee on the basis of sale consideration dete....