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TMI Blog2023 (3) TMI 815X X X X Extracts X X X X X X X X Extracts X X X X ..... ded that assessee has not claimed the amount as expenditure in the succeeding assessment year. The alleged disallowance does not find place in clause (a) to (f) of sub-section (9) of Section 270A. Assessee while filing response to the show cause during the assessment as well as during the penalty proceedings has given bona fide explanation within the scope of sub-section-6 of section 270A and disclosed all the material. Thus, the penalty imposed by AO is quashed. Decided in favour of assessee. - ITA No. 47/SRT/2023 - - - Dated:- 6-3-2023 - SHRI PAWAN SINGH , JUDICIAL MEMBER For the Assessee : Shri Sapnesh R Sheth, C.A For the Revenue : Shri Vinod Kumar, Sr-DR ORDER PER PAWAN SINGH , JUDICIAL MEMBER : 1. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as paid Rs.2.50 lakh on account of Value Added Tax (VAT for short) payment on 18.01.2018, which was paid after due date of filing on Income Tax Return (ITR for short) for the year 2017-18. The Assessing Officer issued show cause notice as to why same should not be disallowed from the expenses. The assessee in response to show cause notice, explained that amount of Rs.2.50 lakh was paid on 18.01.2018, after due date of filing the return of income under section 139(1) of the Act. The copy of challan was filed. The assessee submitted that he has not disallowed the said amount expenses nor claimed its deduction while computing income for assessment year 2018-19. And there is no question of double deduction. It was submitted that in case the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g that Assessing Officer has applied due diligence while passing the assessment order and in this case, penalty proceedings was initiated for under-reporting of income in consequence of misreporting because there was a misrepresentation of fact while filing return for assessment year 2017-18. Thus, the exception provided in sub-clause section 270A(6) is not applicable. The Assessing Officer levied penalty @ 200% of tax payable on under-reporting income and worked out the penalty of Rs.1,54,000/-. 5. Aggrieved by the penalty levied by Assessing Officer, the assessee filed appeal before Ld. CIT(A). The appeal of assessee was migrated and adjudicated by NFAC/Ld. CIT(A) vide order dated 05.01.2023. The NFAC/Ld. CIT(A) confirmed the action of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of evasion of tax. Further, explanation of assessee is bona fide as per the provision of sub-clasue-6 of Section 270A or the material facts to substantiate explanation were disclosed. The ld AR for the assessee submits that as per the provision of section 270A(9) such disallowance does not fall into the category of mis-reporting of income in item (a) to (f) of section 270A of the Act. Accordingly, penalty @ 200% of tax payment is not leviable. 7. In alternative submission, Ld. AR for the assessee submits while issuing show cause notice, the Assessing Officer issued notice for want i.e. under-reporting of income and penalty order under section 270A of the Act was passed on other limb i.e., under reporting of income in consequence of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt can be made, only on the event if such allowance is claimed in the computation of income. The assessing Officer while passing the assessment order has not given any categorically finding that the assessee claimed deduction of such amount in computation of income of such amount. In response to show cause against levy of penalty under section 270A(2), the assessee again specifically contended that assessee has not claimed the amount as expenditure in the succeeding assessment year. 10. Further I find merit in the submission of Ld.AR for the assessee that the alleged disallowance does not find place in clause (a) to (f) of sub-section (9) of Section 270A. Moreover, I my view, the assessee while filing response to the show cause during t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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