The assessee filed its return of income  declaring NIL income after set-off of brought forward losses. The assessment was completed making TP adjustment of Rs.31.15 Cr. Pending appeal, the assessee entered into an APA with CBDT covering AYs 2011-12 to 2018-19 and filed modified return u/s. 92CD(1) offering Rs.14.16 Cr. as per APA. No order u/s. 92CD(3) was passed, and tax on the modified return was duly paid. Despite this, penalty u/s. 270A was levied without granting virtual hearing as mandated under the Faceless Penalty (Amendment) Scheme, 2022. The Department admitted that no order u/s. 92CD(3) was passed and that taxes were paid in terms of the APA. The High Court held that the penalty order suffered from non-consideration of relevant facts and violation of the mandatory requirement of granting a hearing. Penalty order was quashed and matter remanded to AO to grant virtual hearing and pass fresh speaking order within 12 weeks, considering also that for AY. 2016-17 penalty was dropped on the same APA. (WP No. 5437 of 2025, dt. 09/09/2025 (AY. 2017-18)