Assessee’s return was processed under section 143(1)(a) with disallowance under section 36(1)(va) for delayed PF\/ESI remittance. Later, after a search, assessment under section 143(3) read with section 153A reiterated the same disallowance. AO levied penalty under section 270A for alleged under-reporting, confined only to disallowance under section 36(1)(va). On writ, the Court held that since disallowance was already made in section 143(1)(a) intimation, assessed income did not exceed processed income and, thus, mandatory ingredients for invoking penalty for under-reporting of income under section 270A(2) and (3) were not satisfied. Court also held that since the assessee’s claim was supported by binding jurisdictional precedent at the time of filing, which was subsequently reversed by the Supreme Court, such an issue cannot invite any penal consequences, just because the view was subsequently reversed. The assessee’s case was covered by exception under section 270A(6)(a), as all material facts were disclosed and the claim was made bona fide, and in such a case, it could not be considered to be an under-reported income. The penalty order was quashed and set aside.\u00a0 On writ against the rejection of the revision application under section 264, the Court held that revisional jurisdiction under section 264 could be invoked to revise a penalty order passed under section 270A notwithstanding availability of an appeal under section 246A. The assessee has discretion to either file an appeal under section 246A against an appealable order or to apply for revision under section 264. Therefore, where the assessee filed a revision under section 264 against the penalty order passed under Section 270A and the Commissioner summarily rejected the revision without assigning reasons, said order was unsustainable.\u00a0\u00a0 (AY. 2019-20)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 270A: Penalty for under-reporting and misreporting of income-Commissioner-Revision of other orders-The assessee has discretion to either file an appeal under section 246A against an appealable order or to apply for revision under section 264. Therefore, where the assessee filed revision under section 264 against penalty order passed under Section 270A, and Commissioner summarily rejected revision without assigning reasons, said order was unsustainable-The penalty order was quashed and set aside. [S. 36(1)va), 143(1)(a), 143(3), 153A, 264(4), 271(1)(c), 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_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-65399","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-h0P","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65399","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=65399"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65399\/revisions"}],"predecessor-version":[{"id":65400,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65399\/revisions\/65400"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=65399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=65399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=65399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}