| Question And Answer | |
|---|---|
| Subject: | Regarding the penalty , 270AA , 270A(8),misreporting |
| Category: | Income-Tax |
| Querist: | Varun nethri |
| Answered by: | Mrs.Prem Lata Bansal |
| Tags: | 270A(8), misreporting, penalty, S.270AA |
| Date: | September 28, 2024 |
One of my friend filed the return for the income tax and got the refund . The case got selected got scrutiny and they have disallowed the amount which is almost 6.5 lacs.they have stated that under reporting due to misreporting of an income which is 200%. I have paid the tax and interest agreeing to them as I am not aware of it. After that they have initatiated penalty of 200% which is almost 4.08 lacs.
whether there is any chance of prosecution. Most of the things are misreported. I am salary assessed . Some CA,s are telling that pay the penalty in installment and sleep peacefully. Some of the other people are telling that if you are paying penalty it’s like u are agreeing to them and they can initiate the prosecution. I am salaried assessed and due to my friends mistake I am facing this issue.
can you please let me know it is advisable to go for an appeal. If I go for an appeal or shall I pay the penalty in instalment.
i am sole earner in my family with single mother
As per the provisions of section 270A(8) where under reported income is in consequence of any misreporting then the penalty shall be equal to 200% of the amount of tax payable on underreported income.
Immunity from imposition of penalty and prosecution u/s 270AA is available only when the penalty proceeding is initiated for underreporting of income u/s 270A(1). Thus where the penalty is initiated u/ s 270A(9) which is for misreporting of income, the immunity is not available. Hence, even if the tax and interest payable as per the assessment order is paid within the time prescribed in the notice of demand then also immunity is not available in the case of misreporting of income.
Accordingly, it is suggested to file appeal against the assessment order and the penalty order, if any.