The assessee filed its return of income \u00a0declaring 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)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 270A : Penalty for under -reporting and misreporting of income – Transfer Pricing adjustment \u2013 Advanced Pricing Agreement \u2013 No order passed u\/s. 92CD(3) on modified return \u2013 Virtual hearing mandatory under Faceless Penalty Scheme \u2013 Penalty order quashed and matter remanded to AO to grant virtual hearing and pass fresh speaking order within 12 weeks. [S. 92CD(3) , 143(3), 144C(3), Art. 226 ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-56540","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-eHW","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=56540"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56540\/revisions"}],"predecessor-version":[{"id":56541,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56540\/revisions\/56541"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=56540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=56540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=56540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}