TaxTMI 
TaxTMI 
2026 (6) TMI 1513
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....ng to the Assessment Year ('A.Y.' for short) 2019-20. 2. The assessee has raised the following grounds of appeal along with the additional grounds: "1. On the facts and in the circumstances of the case, the learned Commissioner of Income tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi erred in confirming penalty under section 270A of the Act amounting to Rs.5,57,203/- levied by Assessment Unit, Income tax Department, particularly when neither the assessment order nor penalty order records Assessing Officer's satisfaction which is mandatory condition as per section 14A(2) before invoking the Rule 8D and therefore penalty under section 270A is bad-in-law, illegal and ab-initio-void. 2. On the facts and in....
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.... in the circumstances of the case, the said learned Commissioner of income tax NFAC (Delhi) erred in confirming the order of the Assessing Office under section 270A of the Income tax Act 1961, particularly when in order of the Assessing Officer it has not been mentioned under which clause /part of section 270A (2) of the Act, the appellant has under reported the income. (b)On the facts and in the circumstances of the case the said learned Commissioner of Income tax has also erred in confirming the order of the Assessing Officer, in respect of penalty undersection 270A of the Act, particularly when, none of the clauses of sub section (2) of section 270A of the Act, is applicable to the appellant." 3. As the additional grounds of ....
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....nd closing balances of the total value of investment aggregating to Rs.38,26,982/- and passed the assessment order dated 30.09.2021 u/s 143(3) r.w.s. 144B of the Act thereby determining the total income at Rs.20,68,89,222/-. The Ld. AO also initiated penalty proceeding u/s 270A of the Act for under-reporting of income. Further, the Ld. AO passed the penalty order u/s 270A of the Act dated 21.03.2025 thereby levying penalty amounting to Rs.5,57,203/- towards under-reporting of income. 5. Aggrieved, the assessee was in appeal before the first appellate authority challenging the penalty levied by the Ld. AO. The Ld. CIT(A)upheld the penalty levied on the ground that the assessee has failed to demonstrate that it had disclosed all relevant f....
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.... pertinent to decide the legal issues raised by the Assessee by way of an additional grounds. Though the Ld. DR had objected to the raising of the said ground, we deem it fit to admit the same and adjudicate, as the issue is of legal nature which goes to the root of the validity of the penalty notice. It is observed that the Ld. A.O. issued a Notice u/s 274 r.w. Section 270A of the Act dated 30/09/2021 for under-reporting of income and subsequent show cause notice dated 14/12/2021 and 07/11/2024. On perusal of the said notice, it is evident that the Ld. A.O. has failed to specify as to what was the actual charge as per Section 270A of the Act, for which penalty was initiated where in the said provision there are various Clauses from 'a' to ....
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....of reducing the loss or converting such loss into income." 10. We draw support from the decisions relied upon by the Ld. AR in the case of G. R. Infra projects Ltd.(supra) where the Hon'ble High Court of Rajasthan has set aside the penalty order on the ground that neither in the assessment order nor in the subsequent show cause notice, the Ld. A.O. has specified under which part of sub-Section(9) of Section 270A of the Act the Assessee's case would fall under. It further held that even in the impugned order, the same was not specified. Further the same has been reiterated in the decision of the Hon'ble High Court of Delhi in the Schneider Electric South East Asia (HQ) Pte. Ltd.(supra), where it has been held that with mere refere....