TaxTMI 
TaxTMI 
2026 (9) TMI 128
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....ent year 2019-20. By that order, the NFAC confirmed the assessee's appeal against the penalty order dated 25 September 2024 passed by the Income Tax Department under section 270A of the Income-tax Act, 1961, levying a penalty of Rs.5,27,813/-. 2. The Assessee has raised the following grounds of appeal: 1. The appellant has paid tax and interest payable as per the Reassessment Order u/s 147 and no appeal against the said order u/s 147 has been filed, thereby satisfying the condition for availing immunity u/s 270AA against penalty proceedings u/s 270A. 2. There was a delay of 30 Days in filing the Form 68 seeking immunity u/s 270AA for which the appellant has requested for condonation of such delay. However, the applicati....
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....er u/s 147 was passed with no variation being made. Hence, the return of income filed in response to the notice Section 148 cannot be construed as Under-Reporting of Income. 5. Further, referring to the case law of Natarajan Anandh Kumar vs Deputy Commissioner of Income Tax, Madras High Court, Dated:23.01.2024, where the assessee had filed the return of income in response to notice u/s 148 and AO was satisfied with the response provided, it was not construed as under-reporting of income. Considering the merit of the case, delay in filing of Form 68 u/s 270AA was condoned. 6. In the given case, the learned Commissioner of Income Tax (Appeals) has failed to appreciate the facts of the case and law applicable. 7. The....
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....put forth in the above grounds of appeal, which explicitly refers to the relevant law and precedent, the impugned penalty order is bad in law and is liable to be quashed. 3. Briefly stated, the facts show that the assessee entered into several transactions, and the tax-deduction-at-source information available to the assessee indicated receipts of Rs.9,050,794 that had not been disclosed. Accordingly, notice under section 148A(a) was issued. The assessee did not respond. A further opportunity was then given by issuing notice under section 148A(b) of the Act on 23 February 2023, which also remained uncomplied with. Consequently, notice under section 148 was issued on 21 March 2023. In response, the assessee filed its return of income on 2....
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....gh the application had been rejected. The Assessing Officer observed that the assessee's only contention related to immunity, and held that payment of tax and non-filing of appeal, though necessary conditions, were not by themselves sufficient for grant of immunity. He accordingly rejected the claim and levied penalty under section 270A amounting to Rs.527,830. 5. The assessee appealed before the learned CIT(A), reiterating the same submissions and contending that there was no under-reporting of income within the meaning of section 270A(6) of the Act. The assessee relied on the decision of the Hon'ble Supreme Court in CIT v. Reliance Petroproducts Pvt. Ltd. (2010) 322 ITR 158 and other judicial precedents, and submitted that the penalty ....
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....as High Court), dated 23 January 2024, to contend that penalty under section 270A could not have been levied. He submitted that, in the Madras High Court decision, the assessee had not filed a return under section 139 of the Act but had filed the return only in response to the reopening notice. In that case also, the assessee filed an application for immunity, and the delay of 30 days was condoned. Referring to paragraph 9 of that judgment, he submitted that where the assessee offers a bona fide explanation, section 270A(6)(a) protects the assessee and penalty cannot be levied. 7. The learned Senior Departmental Representative, Shri Venkatesh, Additional Commissioner of Income Tax, submitted that immunity from penalty is governed by sect....
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....tion on record for the assessee's failure to file the original return of income. In the absence of such return, the income returned under section 148 of the Act becomes under-reported income. The assessee must therefore explain why penalty should not be levied on such under-reported income. 10. As per form No. 36 filed before us the first ground of appeal relates to the rejection of immunity under section 270AA of the income tax act merely on account of the procedural delay in filing form No. 68 thereby imposing penalties under section 270A despite requesting for condonation of delay. 11. In view of the above facts, we do not find that any of the decision relied upon by assessee has the case of the assessee for the reason that even th....