Bajaj Housing Finance Limited Vs ITO (ITAT Pune)
ITAT Pune held that penalty not leviable under section 270A of the Income Tax Act since show cause notice failed to specify the applicable limb u/s. 270A(9) under which the penalty was imposed. Accordingly, penalty is quashed and appeal is allowed.
Facts- The assessee is a Limited Company. The case of the assessee was selected for scrutiny assessment. AO concluded the assessment proceedings making the addition for short term capital gain at Rs.43,78,250/-. Subsequently, AO initiated the penalty proceedings by issuance of notice u/s.274 r.w.s. u/s.270A of the Act on 16.07.2021 for under reporting of income in consequence of misreporting of income. However, as per AO assessee failed to comply to the notice of hearing and AO concluding the proceedings levying penalty u/s.270A of the Act @200% of the tax of Rs.13,07,784/- thereby calculating the penalty at Rs.26,15,568/-.
CIT(A) affirmed the order of AO. Being aggrieved, the present appeal is filed.
Conclusion- Delhi Tribunal in the case of Jaypee Cement Corporation Ltd. vs. ACIT [2023] 157 com 757 (Delhi-Trib.) [11-09-2023] has held that penalty not leviable in case of in absence of specifying the sub-clause of section 270A(9) of the Act.
Hon’ble Punjab and Haryana High Court in the case of CIT Vs. Deep Tools Pvt. Ltd as reported in 274 ITR 603. Further, the ld AR also argued that in the penalty show cause notice issued u/s 270A read with Section 274 of the Act, the ld AO did not mention the specific charge of offence committed by the assessee i.e. the AO did not mention whether the assessee has either underreported his income or misreported his income or underreported in consequence of misreporting of his income.
