9911796707
TMI Blog2023 (10) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... apply sub-clause (a) of sub-section (9) of section 270A of the Act, same needs to be understood with the context of reduction in income or reduction in loss computed by the assessee for relevant assessment year. In the present case, parameters prescribed for levy of penalty u/s. 270A is not satisfied, because the assessee neither claimed excessive loss, which resulted in reduction in taxable income or reduction in loss to be adjusted against income either in the impugned assessment year or subsequent assessment years. Therefore, explanation offered by the assessee that he has computed excessive loss under the head income from house property in respect of self-occupied house property needs to be understood in the above context of underreport ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act and in circumstances of the case. 2. The NFAC, Delhi erred in confirming the levy of penalty u/s 270A of the Act to the tune of Rs. 9,69,180/- on the presumption of misreporting of income of Rs. 4,84,590/- as per the provisions of section 270A(8) of the Act without assigning proper reasons and justification. 3. The NFAC, Delhi failed to appreciate the levy of penalty u/s 270A of the Act for presumed mis-reporting of income was wholly unjustified and ought to have appreciated that the inadvertent mistake of treating the Self-occupied Property as Let out Property for the purpose of computation of income from house property and consequential claim of carried forward the loss from House Property amounting to Rs. 15,05,253/-would not att ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied and not sustainable both on facts and in law. 8. The NFAC, Delhi failed to appreciate that the impugned order was passed out of time, invalid, passed without jurisdiction and not sustainable both on facts and in law. 9. The NFAC, Delhi failed to appreciate that procedure for conducting Faceless Appeal Regime was not followed and ought to have appreciated that in the light of the procedural irregularities committed, the impugned order under consideration accordingly should be reckoned as bad in law. 10. The NFAC, Delhi failed to appreciate that there was no proper opportunity given before passing of the impugned order and any order passed in violation of the principles of natural justice would be nullity in law." 3. Brief facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, while filing return of income for assessment year 2019-20 and the same was filed on 28.07.2020, he has not taken set off of brought forward losses against house property income. Therefore, showing excess loss by mistaken of facts cannot be considered as under-reporting of income. The Assessing Officer, however, was not satisfied with the explanation furnished by the assessee and according to the Assessing Officer, as per provisions of section 270A(2) of the Act, if the income assessed has effect of reducing loss or converting such loss into income should be considered as under-reporting income and penalty provisions of section 270A of the Act become applicable. The assessee has claimed set off of unabsorbed losses in the next year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 270A(8) of the Act does not applicable to the facts of the present case. 7. The learned DR Shri P.Sajit Kumar, supporting order of the learned CIT(A), submitted that it is a clear case of misreporting or suppression of facts, as per section 270A(9) of the Act, which is clear from the facts brought on record by the Assessing Officer that the assessee has computed excessive loss under the head 'income from house property' and carry forward loss to subsequent assessment years. The arguments of the assessee that he did not claim set off of loss in subsequent year does not hold good for levy of penalty, because, the moment income computed results in excess income over and above income returned or reduces loss, then penalty u/s. 270A is applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act is the assessee has misreported or suppressed facts with regard to income from house property which resulted in computation of excessive loss under the head 'income from house property'. According to the Assessing Officer, whether the assessee has claimed set off of unabsorbed losses in next year or not claimed is also does not matter. 9. In our considered view, the Assessing Officer has misunderstood the provisions of section 270A(9), while interpreting levy of penalty for under reporting of income. The concept of underreporting of income should be understood in the context of claiming any deduction or expenses, which is otherwise not allowable for computing loss, which is not otherwise as per law, which resulted in reduction in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
