TaxTMI 
TaxTMI 
2026 (9) TMI 610
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....r of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, ["learned CIT(A)"], for the assessment year 2019-20. 2. The solitary grievance of the assessee is against the levy of penalty under section 270A of the Act. 3. We have considered the submissions of both sides and perused the material available on record. The brief facts of the case are that the assessee is a company incorporated under the Companies Act, 1956, and is engaged in various activities such as promoting and developing ingenious and exotic breeds of Sheep and Goats through scientific breeding. Further, all subscribers to the Memorandum of Association of the assessee are representatives of the Government of Karnataka and hold shares on behalf of the Governor, G....
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....estment. 6. As regards the interest income earned during the year, the assessee submitted that it earned total interest income of Rs. 85,06,523 (Rs.81,39,683/- in State Bank of India and Rs. 3,66,840/- in IDBI Bank Limited) during the year under consideration. In its return of income and computation of income, the assessee has shown net interest income of Rs. 38,12,551/- (Rs. 85,06,523 - Rs. 46,93,972). As per the assessee, an expense/deduction of Rs. 46,93,972/- was claimed during the year, as the said amount was remitted to the Government of Karnataka as per the instructions. In support of the claim, the assessee provided a copy of the bank interest repayment letter, a copy of the challan, a copy of the bank statement reflecting the in....
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....ring, the learned Authorised Representative ("learned AR") submitted that the assessee is a Company owned by the Government of Karnataka and the audit of accounts has to be performed by the statutory auditor appointed by the Comptroller and Auditor General of India under section 139(5) of the Companies Act, 2013. Later, a supplementary audit has to be carried out independently by the Comptroller and Auditor General under section 143(6)(a) of the Companies Act, 2013. It was submitted that the statutory audit of the company was completed on 16/11/2022, and the final clearance with Nil comments from the Comptroller and Auditor General was received on 20/01/2023. The annual accounts were finally adopted at the annual general meeting held on 07/....
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....t to mandatory statutory audit requirements under the Companies Act, 2013. In this regard, it is relevant to note the provisions of section 139(5) of the Companies Act, 2013, which specifically mandates that the appointment of the statutory auditor be made by the Comptroller and Auditor General of India. Further, as per the provisions of section 143(6)(a) of the Companies Act, 2013, the supplementary audit has to be carried out independently by the C&AG. From the documents placed on record, we find that the final clearance with Nil comments from the C&AG was issued on 20/01/2023. As per the assessee, the annual accounts were only thereafter finally adopted at the AGM held on 07/02/2023, a copy of which has been placed on record by the asses....
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....of this section, shall not include the following, namely:- (a) the amount of income in respect of which the assessee offers an explanation and the Assessing Officer or the Commissioner (Appeals) or the Commissioner or the Principal Commissioner, as the case may be, is satisfied that the explanation is bona fide and the assessee has disclosed all the material facts to substantiate the explanation offered;" (emphasis supplied) 15. Therefore, in view of the facts and circumstances of the present case, we are of the considered view that the instant case squarely falls within the purview of the provisions of section 270(6)(a) of the Act, as the assessee has duly explained the circumstances which resulted in the delay in filing its....