Punam Kanwar Bhati Vs ITO (ITAT Jodhpur)
Conclusion: Penalty under section 270 A was not leviable as the nature of addition/disallowance were not in the nature of misreporting or misreporting income of assessee and assessee had paid the demand within 30 days and filed the required form no. 68 and that form was procedural in nature.
Held: During the year under consideration, AO had added Rs.28,388/- on account of violation of section 40A(3), Rs. 26,811/- on account of Interest income and disallowed excess depreciation claimed amounting to Rs.1,00,000/-. AO also initiated penalty proceedings for misreporting of income to the extent of Rs.1,00,000/- as per the provision of section 270A(9)(d). After the introduction of Faceless Penalty Scheme. 2021, this case was assigned/transferred to ReFAC Unit for the purpose of completion of said penalty proceedings. Thereafter, show cause notice for penalty under section 270A was issued with compliance date fixed on or before 11.03.2021. But assessee did not file reply to show-cause notice. Thereafter, as an opportunity of being heard was issued to assessee but again assessee did not file any response. Thereafter. as a matter of natural justice, show-cause notice and reminder letter was issued to assessee and served on assessee but assessee did not file any submissions and/ or reply with respect to the show cause notices issued till the finalization of the penalty proceedings on merits. Accordingly an order u/s 270A was passed and levy of penalty of Rs. 49,148/-. It was held that the nature of addition/disallowance were not in the nature of misreporting or misreporting income of assessee and assessee had paid the demand within 30 days and filed the required form no. 68 since that form being procedural nature therefore, AO was directed to delete the penalty levied u/s. 270A.
