TaxTMI 
TaxTMI 
2026 (7) TMI 50
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....he ld CIT A ] whereby the appeal against the penalty order under section 270A of the Income Tax Act, 1961 [ the Act ] was dismissed. The penalty order dated 19/09/2024, passed by the Assessment Unit, Income Tax Department [ the Ld AO ], levied a penalty of Rs. 11,02,098. Aggrieved, the assessee has preferred this appeal challenging the penalty as confirmed by the NFAC, contending that the levy under section 270A is invalid because the notice and order of assessment as well as penalty order both did not specify the relevant limb of misreporting of income. 2. The Appellant is engaged in the wholesale trade of rice, dals, pulses and similar commodities and operates from a godown at APMC Yard, Yeshwanthpur, Bangalore. He purchases goods from....
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....ied, being 200% of the tax payable on the income added in the assessment proceedings. 4. Aggrieved by the penalty order passed by the learned Assessing Officer under section 270A of the Act, the Appellant filed an appeal before the learned Commissioner of Income Tax (Appeals) [CIT(A)"] on 20/10/2024. The learned CIT(A) dismissed the appeal on the ground that the Appellant had not filed written submissions. 5. In appeal before us, The learned AR submits that the learned CIT(A) issued notices to the Appellant by email, despite the Appellant's specific request in Form 35 that communications be sent by a mode other than email. In response to the question, "Whether notices/communication may be sent on email?", the Appellant had answered "N....
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....fell within any clause of section 270A(9), as required for penalty at 200% under section 270A(8). The penalty is therefore unsustainable. 9. The learned Departmental Representative supported the orders of the lower authorities and submitted that the Appellant had not challenged the additions made by the Assessing Officer, thereby accepting the disallowances. It was therefore contended that the Assessing Officer was justified in initiating and levying penalty for misreporting of income under section 270A of the Act. 10. We have considered the rival submissions and perused the orders of the lower authorities. In the assessment order, the Assessing Officer disallowed Rs. 14,45,115, being 80% of Rs. 18,06,394 claimed towards loading and u....
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....e assessee must be informed of the specific default falling within clauses (a) to (f) of section 270A(9). In Schneider Electric South East Asia (HQ) Pte. Ltd. vs. Asst. Commissioner of Income-tax [2022] 145 taxmann.com 665 (Delhi) [28-03-2022] and Chambal Fertilizers and Chemicals Ltd. vs. Office of the Principal Commissioner of Income-tax [2024] 158 taxmann.com 184 (Rajasthan)/[2024] 297 Taxman 168 (Rajasthan)/[2024] 462 ITR 4 (Rajasthan) [04-01-2024], it was held that: 21. The Delhi High Court in Schneider Electric South East Asia (HQ) PTE Ltd. (supra), inter alia, observed and directed as under: "6. Having perused the impugned order dated 9th March, 2022, this Court is of the view that the Respondents' action of den....
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....d order dated 9th March, 2022 passed by Respondent No. 1 under section 270AA(4) of the Act is set aside and Respondent No. 1 is directed to grant immunity under section 270AA of the Act to the Petitioner. 11. With the aforesaid directions, the present writ petition along with pending applications stand disposed of." 22. The finding recorded by the revisional authority is apparently contrary to the facts and essentially based on assumptions only on account of the fact that the petitioner on its own disclosed the income in question. As noticed hereinbefore, though several notices were issued under section 142 of the Act, during the course of scrutiny proceedings and as many as ten issues were raised, on which the authority c....