2026 (6) TMI 929

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....hi has erred in law and on facts by dismissing the appeal as infructuous as appellant had filed Form-1 under the Direct Tax Vivad Se Vishwas Scheme, 2024 ignoring the fact that neither the appellant had filed an application for withdrawing of the appeal and nor the complete formalities were finished under the scheme. 2) That the National Faceless Appeal Centre (NFAC),Delhi has erred in law and on facts in not considering the submissions filed before it. 3) That the penalty imposed under section 270A of Income Tax Act, 1961 amounting to Rs. 2,07,818/- is unlawful and excessive in nature. 4) That the authorities below have erred in law and on facts in not considering the fact that income was assessed on estimated ba....

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.... (for short 'the Act') without appreciating the facts of the case thereby imposing penalty of Rs. 2,07,818/- being 200% of amount of tax payable on under-reported income which is in the consequence of misreporting of income as per provision of section 270A(9)(a) of the Act in the case of the assessee for A.Y. 2017-18 for under reporting of income. 3. She submitted that on appeal, the ld. CIT (A) dismissed the appeal as infructuous as assessee had filed Form-1 under the Direct Tax Vivad Se Vishwas Scheme, 2024 ignoring the fact that neither the assessee had filed an application for withdrawing of the appeal nor the complete formalities were finished under the scheme. Aggrieved with the above order, assessee is in appeal before us. 4. L....

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....venue relied on the order of the Assessing Officer. 8. Considered the rival submissions and material placed on record. A perusal of the provisions of section 270A of the Act reveals that it identifies two different set of defaults for attracting penalty, both inviting different quantum of penalty. The section recognizes underreporting of income as one default and underreporting as a consequence of misreporting, as the other default, with the first default attracting penalty at the rate of 30% of the tax payable on the underreported income and the other default attracting penalty at the rate of 200% of the tax payable on such income. While subsection (1) to (7) of section 270A deal with underreporting of income, sub section (8) & (9) deal....