2025 (3) TMI 1901

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.... of Income-tax (Appeals), Income Tax Department, National Faceless Appeal Centre (NFAC), Delhi [CIT (A)] erred in confirming the penalty of Rs. 1,08,454/- levied by the Additional Joint / Deputy/Assistant Commissioner of Income-tax Income-tax Officer, National Faceless Assessment Centre, Delhi (AO) being 200% of tax of Rs. 54,227/- for underreporting income in consequence of misreporting u/s. 270A of the Act. 2. The appellant submits that the appellant has not underreported/misreported any income and therefore no penalty can be levied u/s. 270A of the Act. 3. The CIT (A) erred in confirming the penalty levied by the AO by holding that mens rea is not an essential element for levy of penalty of civil obligation of liability....

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.... section 80IA(4)(iii) of the Income Tax Act 1961 (the Act) towards profits derived from the industrial undertaking. The assessment for AY 2018-19 was completed under section 143(3) of the Act on 12/03/2021 assessing the income at Rs. 6,46,529/- against the income returned at Rs. 4,71,040. The assessing officer (AO) while completing the assessment denied deduction under section 80IA(4)(iii) to the extent of Rs. 1,75,489/- towards income received by the assessee by renting out the lobby area. The AO denied the benefit for the reason that the impugned income does not fall within the purview of profits and gains derived from the industrial undertaking. The addition made by the AO resulted in the tax demand of Rs. 3,980. The assessee did not con....

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....*** (8) Notwithstanding anything contained in sub-section (6) or sub-section (7), where under-reported income is in consequence of any misreporting thereof by any person, the penalty referred to in sub-section (1) shall be equal to two hundred per cent of the amount of tax payable on under-reported income. (9) The cases of misreporting of income referred to in sub-section (8) shall be the following, namely:- (a) misrepresentation or suppression of facts; (b) failure to record investments in the books of account; (c) claim of expenditure not substantiated by any evidence; (d) recording of any false entry in the books of account; (e) failure to record any receipt in books of accou....