Ennore Tank Terminals Private Limited Vs Additional /Joint /Deputy/ACIT (Madras High Court)
The Madras High Court considered a writ petition challenging an order dated 16.03.2022 imposing penalty under Section 270A of the Income-tax Act, 1961 for under-reporting of income in consequence of alleged misreporting.
The petitioner submitted that it had claimed deduction under Section 80-IA in its return of income. According to the petitioner, the deduction was accepted to the extent of Rs.93,96,28,729/- in the intimation under Section 143(1) and later accepted to the extent of Rs.90,79,32,021/- in the assessment order under Section 143(3). Consequently, the assessed normal income increased from Rs.16,30,70,190/- under the intimation to Rs.19,47,66,901/- under the assessment order. The petitioner further contended that its case fell within Section 115JB because its book profits were substantially higher than the taxable income, with deemed income of Rs.1,11,01,54,585/- remaining unchanged in the return, the intimation, and the assessment order. On that basis, it argued that no tax liability arose due to the alleged under-reporting.
The petitioner referred to the show cause notices and replies submitted thereto and contended that the case did not fall within the scope of misreporting under Section 270A. Reliance was placed on the judgment of the Madras High Court in Verizon Data Services India Private Limited v. Deputy Commissioner of Income Tax, W.P.No.18377 of 2024, order dated 06.02.2026, particularly paragraph 53.
