TaxTMI 
TaxTMI 
2025 (6) TMI 2161
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.... the levying of penalty under section 270A of the Income Tax Act, 1961 of Rs. 30,28,172/-. 2. The Ld. CIT(A) further erred in holding that the case of the appellant falls under the under-reporting of income in consequence of misreporting thereof as per provisions of section 270A(9)(a) of the Income tax Act, 1961. 3. The Ld. CIT(A) further erred in not considering the fact that, due to an error on the part of the Appellant company, the deduction under Section 80IAC of the Income-tax Act, 1961 was wrongly claimed, when the Appellant company having opted for taxation under Section 115BAA of the Income-tax Act, 1961, under which such a deduction is not allowable. 4. The Ld. CIT(A) further erred in not considering the ....
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.... during the year under consideration. The assessee vide its reply dated 15/11/2023 and 12/02/2024 furnished relevant data regarding the issues sought to be verified by the Ld.AO. 2.1 After perusal of the details furnished by the assessee, the Ld.AO disallowed the claim of assessee u/s.80IAC of the Act of Rs. 95,76,126/-. The Ld.AO also initiated penalty proceedings u/s.270A of the Act, for under reporting in consequence of misreporting of income. 2.2 The Ld.AO initiated penalty u/s. 274 r.w.s. 270A of the Act, by issuing notice dated 22/03/2024, for under reporting of income. The said notices placed at page 203 of the paper book filed by the assessee. The assessee made application u/s. 270AA(2) of the Act in Form no. 68 on 19/04/2024,....
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....23 was issued and the assessee company was unable to file ITR-U i.e, Updated return to rectify the error and withdraw the deduction claimed and pay tax thereon. 3.1 The assessee thus prayed for immunity from the levy of penalty u/s.270A of the Act. The Ld. CIT(A) however, confirm the penalty levied by the Ld.AO. Aggrieved by the order of the Ld. CIT(A) the assessee is in appeal before this Tribunal. 4. The Ld.AR submitted that, there was no misreporting of income within the meaning of section 270A(9), as there was no deliberate misstatement, falsification of accounts, or omission of facts. The deduction was wrongly claimed due to an inadvertent error, which was rectified by the assessee on realising vide written submission dated 12....
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....be upheld. We have perused the submissions advance by both sides in the light of record placed before us. 6. Admittedly the assessee accepted the addition made during the original assessment proceedings and paid the taxes due. It is also admitted position that, the assessee suo moto accepted its incorrect claim of deduction u/s. 80IAC and agreed to disallow the same. The same was communicated to the assessing officer vide its reply dated 12/02/2024 and 15/03/2024. 6.1 The Ld.AR submitted that, the assessee adopted new tax regime u/s.115BAA. However, for the year under consideration it wrongly filed its return of income under the old regime which was not allowed under the Act for companies. It was submitted that, as the old regime a....
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....come. 270A. (1)........................ (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) to record investments in the books of account; (c) claim failure of expenditure not substantiated by any evidence; (d) recording of any false entry in the books of account; (e) fa....