2026 (7) TMI 1236

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sessment Year 2017-18. The word 'Act' herein this order would mean Income Tax Act, 1961. 2. The assessee has raised following grounds of appeal:- 1. That the Ld. CIT (Appeals) erred in confirming the penalty u/s 270A for under reporting of income, although there is no under reporting of income by the appellant. 2. That the Ld. CIT (Appeals) erred in confirming the penalty of Rs. 9,11,142/- u/s 270A imposed by the AO, although Ld. AO neither in the assessment order nor in the penalty notices, had not specifically mentioned that under which clause of sec. 270A the case of appellant falls. 3. The only issue contested by the appellant through the above grounds of appeal is regarding the imposition of penalty u/s 270A of ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....damages incurred on account of riots being a capital or revenue expenditure is itself a debatable issue. Reference was invited to decision of Hon'ble Nagpur Tribunal in the case of Ravindra M. Kharche (161 taxmann.com 712) and of this Tribunal in Akum drugs and pharmaceutical Ltd. 175 taxmann.com 135. It was submitted that there is neither any misrepresentation of fact nor any separation thereof so as to attract penalty u/s 270A. The assessee has placed on record a paper book, inter alia, comprising copy of penalty notices issued to it. 5. The ld. DR placed reliance on the order of the lower authorities. 6. We have heard rival submissions in the light of material placed on record. Upon perusal of impugned penalty notices u/s 270A righ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... not even a whisper as to which limb of Section 270A of the Act is attracted and how the ingredient of sub-section (9) of Section 270A is satisfied. In the absence of such particulars, the mere reference to the word "misreporting" by the Respondents in the assessment order to deny immunity from imposition of penalty and prosecution makes the impugned order manifestly arbitrary...." 8. Further, this Tribunal in the case of B.R. Agrotech Ltd. in ITA No.8970/DEL/2025 vide order dated 10.06.2026 held as under :- "......4. The ld. Counsel for the assessee argued that no case of maintainability of any penalty for under reporting of income has been made out in its case. It was argued that it is trite law that whenever there is a case o....