Meghal Rajeshkumar Thakor Vs ITO (ITAT Ahmedabad)
Facts of the Case
The assessee, an individual, had not filed the return of income under section 139(1) for Assessment Year 2018-19. Based on information regarding sale of immovable property jointly owned by the assessee and other co-owners for a total consideration of Rs. 10,55,00,006, reassessment proceedings were initiated and notice under section 148 was issued on 28.03.2022. In response to the notice, the assessee filed the return of income on 26.04.2022 declaring total income of Rs. 42,03,780 representing her share of sale consideration.
The Assessing Officer treated the income disclosed in response to notice under section 148 as under-reported income and initiated penalty proceedings under section 270A read with section 274. The tax payable on such income was determined at Rs. 8,14,478 and penalty of Rs. 4,07,239 being 50% of tax payable on under-reported income was levied by order dated 29.09.2023.
Before the Assessing Officer and the appellate authorities, the assessee contended that the demand arising from reassessment was mainly due to non-granting of tax credit for taxes already paid and a rectification application under section 154 dated 20.03.2023 had been filed. The assessee further claimed that after payment of tax and interest, an application for immunity under section 270AA was submitted in Form No. 68 vide letter dated 05.09.2023 and the same had also been manually verified by the jurisdictional Assessing Officer on 16.03.2023. It was argued that due to a technical glitch on the ITBA portal, the application could not be filed electronically and therefore it was submitted manually. The assessee also submitted that no appeal had been filed against the reassessment order and therefore all conditions for grant of immunity were satisfied.
