Nateshan Sampath Vs DCIT (ITAT Bangalore)
ITAT Bangalore held the imposition of penalty under section 270A of the Income Tax Act is not sustainable since charge of under reporting or mis-reporting not clarified. Thus, penalty cannot be imposed in a light hearted manner or in routine manner.
Facts- The case was reopened on the basis of information flagged by Insight Portal that the assessee has received interest of 0.18 lakhs, received contractual receipt of Rs.176.81 lakhs, sold property for a total consideration of Rs.126.93 lakhs and paid Rs.1,000/- to non- residents. Accordingly, notice u/s 148 of the Act was issued and in response to same, the assessee filed return of income on 28.4.2022, wherein the assessee declared loss of Rs.1,02,80,375/- from business and profession and long term capital gains of Rs.20,68,361/- from sale of immovable property. Thereafter, the assessment u/s 147 r.w.s. 144B of the Act was completed on 28.2.2023 on a total income of Rs.20,92,490/-. The AO on or before the completion of assessment proceedings u/s 147 r.w.s. 144B of the Act also initiated the penalty proceedings. AO imposed 200% penalty of Rs. 38,05,290 u/s. 270A of the Income Tax Act.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
