Case Law Details
Genesis Institute Of Medical Science Private Limited Vs ITO (Kerala High Court)
Introduction: The Genesis Institute of Medical Science Private Limited recently secured a favorable outcome in a case against the Income Tax Officer (ITO) in the Kerala High Court. The court quashed penalty proceedings under Section 270A of the Income Tax Act, 1961, for the assessment year 2021-22. The central contention was the absence of a fixed hearing date after the petitioner’s response to the show cause notice.
Detailed Analysis:
1. Background of the Case: The assessment for the petitioner revealed an addition of Rs. 8,37,97,401 to the returned income for the relevant assessment year. The detected amount surfaced during scrutiny assessment proceedings, leading to the initiation of penalty proceedings under Section 270A for under-reporting of income due to misreporting.
2. Challenges and Responses: The petitioner refrained from challenging the assessment order but contested the penalty order under Section 270A. The petitioner received a show cause notice on 9.12.2022, responded on 30.12.2022, and sought an adjournment. Subsequently, another notice on 6.4.2023 prompted the petitioner’s reply on 12.4.2023, supported by judgments from the Income Tax Appellate Tribunal.
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