RNS Power Ltd. Vs DCIT (ITAT Bangalore)
Penalty U/s 270A Deleted After HC Allowed Delay Condonation & Restored Sec.80IA Deduction – ITAT Bangalore
ITAT Bangalore deleted penalty levied u/s 270A for alleged under-reporting/misreporting after the Karnataka High Court condoned delay in filing return and restored eligibility of deduction u/s 80IA. The assessee company’s deduction was initially denied invoking s.80AC due to belated filing, leading to penalty of ₹2.22 crore. Subsequently, the High Court condoned delay of 150 days in filing return, thereby validating the deduction claim.
The Tribunal held that once the underlying disallowance itself ceased to exist due to High Court relief, penalty could not survive. ITAT also condoned 56-day delay in filing appeal considering bona-fide procedural lapse. Accordingly, the penalty order was directed to be deleted and the appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
1. This appeal is filed by RNS Power Ltd., Bangalore (the assessee/appellant) for assessment year 2020 — 21 against the appellate order passed by the National Faceless Appeal Centre, Delhi dated 28 February 2025 wherein the appeal filed by the assessee against the penalty order dated 28 March 2023 passed under section 270A of the Income Tax Act, 1961 [the Act] by the Assessment Unit of the Department (the learned AO) for the assessment year was dismissed. Therefore assessee is in appeal before us. The solitary ground of appeal is with respect to the confirmation of the penalty under section 270A of the Act of Rs.2 22,26,572 levied by the income tax department.
