TaxTMI 
TaxTMI 
2026 (9) TMI 366
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....r referred to as 'AY') 2017-18. 2. The main grievance of the assessee is against the action of the Ld.CIT(A) confirming the action of the penalty levied u/s. 270A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') to the tune of Rs. 55,86,617/- for 'under reporting of income' to the tune of Rs. 3,22,95,122/-. 3. The brief facts are that the assessee-Co-operative Urban Bank Ltd is engaged in the business of banking and filed its return of Income (RoI) on 30.10.2017 for AY 2017-18 disclosing net-loss of Rs. 1,33,46,428/-. The return was selected for scrutiny and pursuant to the notices issued by the AO, the Managing Director, General Manager appeared before AO along with Ld.AR of the assessee and they explained the retur....
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....tled for immunity from imposition of penalty u/s. 270AA of the Act since it satisfies the condition for invoking the immunity. Alternatively, the assessee also defended its action for claiming in its return the deduction under ICDS (Income-tax Computation and Disclosure Standard) which are the guidelines to calculate the taxable income of assessee-Bank; and submitted that provisions of ICDS were very complex and CBDT had to rescind its earlier notifications [making ICDS apply for AY 2016-17] and later issued several revised notifications explaining and clarifying the implementation of ICDS from AY 2017-18 (refer Page 61 of paper book). It was also submitted that since relevant A.Y:2017-18 was the first year of adoption of ICDS, the Appellan....
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....o or attempted to either conceal its income or furnish inaccurate particulars. 4. However, the AO didn't agree with the contentions of the assessee on the ground that the assessed income exceeded the returned income and therefore, according to him, Section 270A of the Act stood automatically attracted and hence, he brushed aside inter alia the assessee's assertion that it is eligible for immunity u/s 270AA of the Act since it satisfied the condition precedent specified in it by promptly remitting the tax and interest as per the demand raised pursuant to passing of assessment order on 21.12.2019 (within 30 days and didn't prefer any appeal against the assessment order). And the AO levied penalty of Rs. 55,86,617/- being 50% of the amount ....
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....the assessee is noted to have realized its mistake and withdrew the ibid claims and accordingly, the AO passed the assessment order on 21.12.2019 assessing income at Rs. 1,89,48,694/-. Pursuant thereto, assessee paid tax & interest within the period/time given in the assessment order/demand notice and didn't prefer an appeal against the assessment order. Thus it is an undisputed fact that the assessee had fulfilled the conditions prescribed u/s. 270AA of the Act for claiming immunity from Imposition of penalty u/s. 270A of the Act by duly remitting the tax & Interest as per the order of the assessment as well as didn't file any appeal against the assessment order dated 21.12.2019. Thus, it is noted that the assessee has fulfilled the co....