Meda Lakshminarayana Setty Vs ITO (ITAT Bangalore)
Immunity U/s 270AA Cannot Be Denied Due to Technical Glitch in Filing Form 68 – Penalty U/s 270A Set Aside & Matter Remanded – ITAT Bangalore
The assessee did not file the original return u/s 139(1). Based on information available on the portal regarding salary, property sale and interest income, reassessment proceedings were initiated u/s 148. In response, the assessee filed the return declaring income and the AO completed assessment with an addition of ₹16.11 lakh, determining total income at ₹22.61 lakh and initiated penalty u/s 270A.
The assessee paid the tax demand and intended to claim immunity from penalty u/s 270AA by filing Form 68, but due to technical glitches on the portal the form could not be filed in time despite raising grievance requests. The AO rejected the claim and levied penalty of ₹2,17,158, which was confirmed by CIT(A).
The ITAT observed that the assessee had attempted to file Form 68 and the delay of about 8 days occurred due to portal issues, which was supported by grievance records. Further, the AO had rejected the claim without granting an opportunity of hearing as required under section 270AA(4), thereby violating principles of natural justice.
Accordingly, the Tribunal restored the matter to the AO to consider the immunity application and decide the penalty issue afresh after providing proper opportunity to the assessee. The appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
1. ITA No.1795/Bangalore/2025 is filed by Meda Lakshminarayana Setty Naveen Kumar (the assessee/appellant) against the order passed by the National faceless appeal Centre, Delhi [the learned CIT(A)], for assessment Year 2018-19 dated 20.05.2025 wherein the penalty under section 270A of the Income Tax Act, 1961 (the Act) of Rs.2,17,158/- by the penalty order dated 13.09.2024 passed by the Assessment Unit, Income Tax Department, was confirmed. The assessee is aggrieved with the same and is in appeal.
