Natarajan Anandh Kumar Vs DCIT (Madras High Court)
The petitioner, carrying on business as M/s. ITEK Informatic and being an authorised dealer of Tally software, challenged orders dated 24.08.2023 and 02.09.2023 relating to immunity from penalty under Section 270AA of the Income-tax Act, 1961. The petitioner sought quashing of the orders and a direction to grant immunity from penalty under Section 270A.
For financial year 2017-2018, corresponding to Assessment Year 2018-19, the petitioner’s taxable income was stated to be Rs.18,18,870/-. The petitioner stated that ill health between August and October 2018 prevented timely filing of the return. After receiving a notice under Section 148A(b), the petitioner filed the return disclosing gross total income of Rs.19,81,237/-. Net tax payable was shown at Rs.3,68,906/-, while total tax paid was Rs.3,78,904/-, comprising TDS of Rs.3,78,864/- and self-assessment tax of Rs.40/-.
The order dated 09.03.2023 computed net tax liability at Rs.3,68,906/- and, after adding Rs.10,000/- towards default in filing the return, determined aggregate tax liability at Rs.3,78,906/-. However, only Rs.3,78,864/- was credited as prepaid taxes, resulting in Rs.42/- being shown as payable.
The petitioner applied under Section 270AA for immunity from penalty. The application was rejected on the ground that the demanded amount was paid on 21.04.2023 beyond the period specified in the assessment order and that the immunity application was not filed within one month from the end of the month in which the order fixing the tax liability was issued.
