TaxTMI 
TaxTMI 
2025 (4) TMI 2205
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.... 2017-18. 2. At the outset, we find that there is a delay of 53 days in appeal filed by the assessee, for which petition for condonation of delay along with reasons for delay has been filed. After considering the petition filed by the assessee and also hearing both the parties, we find that there is a reasonable cause for the assessee in not filing appeal on or before the due date prescribed under the law and thus, in the interests of justice, we condone delay in filing of appeal and admit appeal filed by the assessee for adjudication. 3. The assessee has raised the following grounds:- 1. The Ld. CIT(A) erred in confirming the order of the ld. AO in imposing penalty u/s 270A without considering the facts and circumstances of ....
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.... building maintenance services to corporate & non-corporate customers. The assessee had not filed its return of income for the assessment year 2017-18. Based on the information, the case was reopened u/s.147 of the Act and the assessment was completed u/s.147 r.w.s. 144 r.w.s. 144B of the Act on 18.04.2023 at an assessed income of Rs. 22,06,215/- by estimating at 7% of the gross receipts. Further, the AO has also levied penalty u/s.270A of the Act for under reporting of income and imposed a penalty of Rs. 3,40,861/- being 50% of tax on alleged under reported income in his order dated 22.08.2023 by holding as under: "During Penalty Proceedings, several Show cause notices dated 18.04.2023, and 11.05.2023 were issued to the assessee a....
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....0,861/- Therefore, penalty amounting to Rs. 3,40,861/- is imposed u/s 27OA of the Income Tax Act, 1961. Issue demand notice and challan. Aggrieved by the order of the AO the assessee preferred an appeal before the Ld.CIT(A), NFAC, Delhi. 4.1 The assessee submitted that the AO has imposed the penalty for concealment of income merely because the assessee has failed to file the return of income, without establishing that there was a conscious concealment of income. Further, the penalty is levied based on the additions made only on the basis of estimation in the assessment order passed u/s.147 r.w.s.144 of the Act. The assessee had admitted an income based on estimation at Rs. 5,04,610/- as against the higher estimation @ 7% on R....
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.... us. 5. The Ld.AR for the assessee assailed the action of the Ld.CIT(A) and stated that the Ld.CIT(A) has erred in sustaining the penalty u/s.270A of the Act, as the assessment u/s.147 r.w.s. 144 of the Act was concluded with an addition made based on the estimation of income. Further, the Ld.AR stated that in this case the time for issue of notice u/s.148 for the A.Y. 2017-18 has ended on 31.03.2021. Further, the escaped income added in the assessment u/s.147 was Rs. 22.06 lakhs, which is less than Rs. 50.00 Lakhs and thus the notice cannot get the benefit of extended period of limitation which is beyond 3 years till 10 years. As the notice itself is illegal, there is no foundation for assessment order based on time barred notice u/s.14....
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....own in Section 270A(6) of the Act as given below: (a)..... (b) the amount of under-reported income determined on the basis of an estimate, if the accounts are correct and complete to the satisfaction of the Assessing Officer or the Commissioner (Appeals) or the Commissioner or the Principal Commissioner, as the case may be, but the method employed is such that the income cannot properly be deduced therefrom; (c) the amount of under-reported income determined on the basis of an estimate, if the assessee has, on his own, estimated a lower amount of addition or disallowance on the same issue, has included such amount in the computation of his income and has disclosed all the facts material to the addition or disallow....