TaxTMI 
TaxTMI 
2025 (3) TMI 2130
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....appeal, the assessee has raised following grounds:- "1. Whether the learned CIT(Appeals) was justified in upholding the penalty levied u/s 270A to the tune of Rs. 1,98,19,933/- for under reporting of income. 2. Assessee craves leave to add or alter or to add or after any other ground at the time of hearing." 3. In this case, the Assessing Officer, on 23/04/2021, passed order under section 144 of the Income Tax Act, 1961 ("the Act") for the year under consideration, duly assessed the assessee's income at Rs. 5,64,00,808, against return income shown by the assessee at Rs. Nil. As held by the Assessing Officer, during the year under consideration, since no relevant details were provided by the assessee to any of the q....
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....e Assessing Officer observed that the provisions of section 270A(2) of the Act clearly states that if the income assessed is greater than the income determined in the return processed under clause (a) of subsection (1) of section 143 of the Act, a person shall be considered to have under reported his income. Therefore, the Assessing Officer being satisfied that there was under reporting of income, penalty was levied under section 270A of the Act for Rs. 5,54,00,808, which was in consequence of misreporting by wilful wrong claim. Therefore, the Assessing Officer held that the penalty shall be equal to two hundred per cent of the amount of lax payable on underreported income, which comes to Rs. 3.96,39,866. 6. On appeal, the learned CIT(A)....
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....Joint Commissioner (Appeals) or the Commissioner (Appeals) or the Principal Commissioner or Commissioner may, during the course of any proceedings under this Act, direct that any person who has under-reported his income shall be liable to pay a penalty in addition to tax, if any, on the under-reported income. A person shall be considered to have under reported his income, if- 1. Income assessed is greater than income returned after processing under section 143(1). 2. Income assessed is greater than maximum amount not chargeable to tax, where no return of income has been furnished. 3. The income reassessed is greater than income assessed. 4. Deemed Tl u/s 115JB or 115JC is greater than deemed TI a....
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....above sub-clause of section 270A(2) of the Act anywhere in the penalty order. The rate of penalty is 50% of tax payable on underreported income. The liability of penalty is 200% of the tax payable on misreported income. There is no scope of penalty being levied @100%. So, the penalty sustained by the learned CIT(A) is hereby quashed. Even on merits also, the penalty is not exigible. Hence, the levy of penalty is hereby directed to be directed. Accordingly, the grounds raised by the assessee are allowed. 9. In the result, appeal by the assessee stands allowed. ITA No.573/Nag./2024 Revenue's Appeal - A.Y. 2018-19 10. The Department has raised following grounds:- "1. On the facts and circumstances of the case and in law, t....