Meena Lalit Jain Vs PCIT (ITAT, Mumbai Bench)
No Addition, No Penalty, No Revision: Once Section 69 Foundation Fell, PCIT’s Section 263 Tower Built on Sections 115BBE & 271AAC Collapsed
Facts of the Case
The assessee’s assessment was completed u/s 143(3) r.w.s. 153C on 30.03.2024. In the assessment, the AO made an addition of ₹1,50,000 u/s 69 as unexplained investment/money & subjected the amount to the special rate of tax prescribed u/s 115BBE.
While concluding the assessment, the AO recorded satisfaction for initiating penalty proceedings u/s 270A. A show-cause notice dated 30.03.2024 was also issued u/s 274 r.w.s. 270A.
However, where an addition under sections 68 to 69D is subjected to tax u/s 115BBE, the specific penalty provision ordinarily applicable is section 271AAC, not the general provision governing under-reporting or misreporting of income u/s 270A.
AO Issued a Corrigendum
After examining the assessment record, the AO issued a corrigendum dated 15.09.2024.
The corrigendum specifically stated that section 270A had been mentioned inadvertently instead of section 271AAC. It directed that the references to section 270A in paragraphs 11 & 13 of the assessment order should be read as references to section 271AAC.
The penalty notice originally issued u/s 270A was also directed to be treated as a notice issued u/s 271AAC.
