DD Target PMT Ltd. Vs DCIT (ITAT Delhi)
ITAT Delhi held that imposition of penalty u/s. 270A(9)(a) of the Income Tax Act without mentioning the specific instance of misreporting in the notice or in order will vitiate the penalty order. Accordingly, penalty deleted and appeal allowed.
Facts- A search and seizure action u/s 132 of the Income Tax, 1961 carried out at the premises of the Assessee on 14/06/2019 and 15/06/2019. Consequent to the said search and seizure, the assessment proceedings have been initiated and the assessment orders came to be passed u/s 153A r.w. Section 143(3) of the Act for A.Y. 2017-18 to 2020-21 by disallowing the business expenditure.
Consequently, penalty proceedings have been initiated against the Assessee and orders of penalty came to be passed on 29/03/2022 and 30/03/2022 respectively by levying 200% penalty u/s 270A(9) (a) of the Act. CIT(A) dismissed the Appeals filed by the Assessee. Being aggrieved, the present appeal is filed.
Conclusion- Held that, there is not even a whisper as to which limb of Section 270A of the Act is attracted and how the ingredient of subsection (9) of Section 270A is satisfied. In the absence of such particulars, the mere reference to the word “misreporting” by the Respondents in the assessment order to deny immunity from imposition of penalty and prosecution makes the impugned order manifestly arbitrary. Accordingly, we allow the Appeals and delete the levy of penalty u/s 270A(9)(a) of the Act in respect of Assessment Years 2017-18 to 2020-21.
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