Baroda Gujarat Gramin Bank Vs DCIT (ITAT Ahmedabad)
In the matter abovementioned ITAT deleted the penalty imposed u/s 270A.
Assessee is a regional rural bank which filed its ITR declaring total income of Rs.13,30,38,090/-. Assessment was completed u/s 143 (3) by making few disallowances and determining the total income as Rs. 13,90,42,220/-. As there is difference between the assessed income and returned income, therefore the AO levied penalty of Rs.5,28,949/- u/s. 270A on account of under reporting of income. CIT (A) confirmed the penalty by holding that however brought forward loss of Rs. 1,05,49,069/- was allowed which is even not claimed in the return even though there is difference between returned income and assessed income as the assessed income was much higher than returned income filed by the appellant. Hence penalty was confirmed.
Before ITAT it was submitted that AO determined the total income/revised income as Rs.12,84,93,150/-. Thus the assessed income is lesser than the returned income of Rs.13.30 crores. Therefore, no question of levying penalty u/s. 270A has been arise and the same is liable to be deleted. On the other hand revenue submitted that the Assessing Officer levied penalty u/s. 270A of the Act, since the assessee has shown Rs.59,54,126/- is exempt dividend income in its return of income. The same was disallowed and added as STGC by the AO and treated as under reported income and levied penalty u/s. 270A. of the Act.
