Case Law Details
G R Infraprojects Limited Vs ACIT (Rajasthan High Court)
Rajasthan High Court held that imposition of penalty u/s. 270A of the Income Tax Act unjustified as application filed u/s. 270AA for immunity of penalty not decided by AO within prescribed time limit.
Facts- The petitioner is a public limited company and is engaged in the execution of turnkey infrastructure projects. The petitioner company filed the return of income for F.Y. 2019-2020 on 13.02.2021. A show cause notice u/s. 143(2) was issued to the petitioner-company. Subsequently, notices u/s. 142(1) of the Act were issued to the petitioner-company. The petitioner-company was asked to show cause why not its claim for deduction of education cess of Rs. 12,85,58,982 be disallowed and be added back to its income for the relevant financial year and penalty proceedings be initiated u/s. 270-A of the Act.
The petitioner company withdrew its claim for deduction of the education cess and accepted the proposed variation. AO has passed the assessment order whereby single addition in relation to deduction of education cess of Rs. 12,85,58,982 is made and added back to the income of the petitioner-company and ordered for initiating penalty proceeding u/s. 270A for misreporting by way of underreporting of income. Simultaneously, notice is issued to the petitioner-company u/s. 274 r.w.s. 270A to show cause why a penalty should not be imposed on it. The same was replied and also an application u/s. 270AA seeking immunity from imposition of penalty u/s. 270A.
Another show cause notice dated 06.02.2023 was issued which was replied. Thereafter, again a show cause notice dated 30.03.2023 for imposing penalty u/s. 270A of the Act was issued and the petitioner-company was asked to file reply on or before 31.03.2023 at 5:00 PM. As per the petitioner-company, reply to the same has been filed by it on 31.03.2023 before 5:00 PM however, the respondent-department passed the penalty order dated 3 1.03.2023 u/s. 270A and imposed a penalty of 200% of tax upon the petitioner-company. Consequently, notice of demand dated 31.03.2023 u/s. 156 was issued to the petitioner-company. Being aggrieved with the same, the petitioner-company has filed this writ petition.
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