TaxTMI 
TaxTMI 
2026 (7) TMI 1824
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....T Act) for under-reporting of the income as a consequence of misreporting is challenged in this writ petition. 2. Learned counsel for the petitioner submits that the petitioner had claimed deduction of the total income under Section 80-IA of the I-T Act in its return of income. In the intimation under Section 143(1), he submits that the deduction was accepted to the extent of Rs. 93,96,28,729/-. Thereafter, in the order under subsection (3) of Section 143, he submits that the deduction was accepted to the extent of Rs. 90,79,32,021/-. On this basis, he points out that the assessed normal income, as per the intimation, was Rs. 16,30,70,190/- and the assessed normal income as per the order under subsection (3) of Section 143 was Rs. 19,47,....
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....onse to these contentions, by adverting to the petitioner's reply dated 16.02.2022, Mr.Ramana Kumar, learned senior standing counsel, points out that the deductions claimed therein fall outside the scope of Section 80-IA and claiming such deductions amounts to misreporting. He also submits that the application under Section 270AA(2) was filed much beyond the time limit of one month and, therefore, such application was not liable to be considered. 6. Section 270A of the I-T Act deals with under-reporting of income. Section 270AA deals with immunity from imposition of penalty. Said provisions are set out, in relevant part, below: "270A(1) The Assessing Officer or the Commissioner (Appeals) or the Principal Commissioner or Commissi....
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....n of penalty under Section 270A and initiation of proceedings under section 276C or Section 276CC, if he fulfils the following conditions, namely:- (a) the tax and interest payable as per the order of assessment or reassessment under sub-section (3) of section 143 or section 147, as the case may be, has been paid within the period specified in such notice of demand; and (b) no appeal against the order referred to in clause (a) has been filed. (2) An application referred to in sub-section (1) shall be made within one month from the end of the month in which the order referred to in clause (a) of sub-section (1) has been received and shall be made in such form and verified in such manner as may be prescribed. ....
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.... it is not possible for the assessee to respond meaningfully to the show cause notice and endeavour to avert the drastic consequences of misreporting. In this regard, I endorse the principle laid down in Verizon Data Services to the effect that there should be misrepresentation or any other form of bad faith to justify proceedings for misreporting. In light of these principles, the show cause notices preceding the impugned order warrant attention. 9. The first show cause notice was issued to the petitioner on 15.02.2021. This notice states that it appears to the income tax officer that the petitioner had under-reported income in consequence of misreporting. No further particulars are contained therein. The subsequent show cause notice da....