| Question And Answer | |
|---|---|
| Subject: | Levy of Penalty u/s 270A of Income Tax Act, 1961 |
| Category: | Income-Tax |
| Querist: | Himanshu Gupta |
| Answered by: | KSA Legal Chambers |
| Tags: | penalty, Section 270A |
| Date: | September 5, 2023 |
What arguments I can take in Reply to Penalty Notice u/s 270A. My case was pending before CIT (A) on issue of disallowance u/s 36(1)(va). Subsequently my appeal was dismissed by CIT (A) in view of judgement by Hon’ble SC in case of Checkmate Services Pvt Ltd. Now the Income Tax Department has initiated the Penalty Proceedings u/s 270A for under reporting of income.
The issue being debatable and all particulars are furnished . If detailed explanation is furnished with supporting case laws the Assessing Officer may drop the penalty proceedings . Assuming the Assessing Officer levies the penalty , the assessee may succeed in appeal . In PCIT v. Modipon Ltd. (2018) 100 taxmann.com 57 / 259 Taxman 426 (Delhi)(HC) AO held that payment could have been deducted only to extent of 20 per cent under section 35DDA. Tribunal held that a view that two views were possible i.e., whether amount paid was allowable as deduction under section 37(1) or deduction was to be allowed under section 35DDA. Accordingly the Tribunal set aside penalty order holding that it was not a case of furnishing inaccurate particulars of income or concealment of income. High Court up held the view of the Tribunal. SLP of revenue was dismissed, PCIT v. Modipon Ltd. (2018) 259 Taxman 425 (SC)