DCIT Vs Chakradhar Contractors And Engineers Private Limited (ITAT Pune)
ITAT Pune held that penalty under section 270A is not leviable since neither the assessment order nor the notice issued u/sec.274 r.w.s.270A the Assessing Officer has specified the limb under which the case of the assessee falls.
Facts- The assessee is a company engaged in the business of construction. The case of the assessee was selected for complete scrutiny under CASS. The Assessing Officer completed the assessment determining the total income of the assessee at Rs.32,18,44,630/- by estimating the income from contract work at 10% of the turnover as against 7.37% declared by the assessee, which the assessee accepted and paid the due taxes.
Subsequently, AO initiated penalty proceedings u/sec.270A of the Act. AO levied penalty of Rs.4,19,55,786/- being 200% of the amount of tax payable on under-reported income in consequence of mis-reporting thereof.
CIT(A) cancelled the penalty. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that where neither in the assessment order nor in the notice issued u/sec.274 r.w.s.270A the Assessing Officer has specified as to under which limb of provisions of sec.270A(2) or 270A(9) the case of the assessee falls, then in that case, no penalty u/sec.270A is leviable. We, therefore, uphold the order of the Ld. CIT(A) and the grounds raised by the Revenue are dismissed.
