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TMI Blog2023 (7) TMI 1430X X X X Extracts X X X X X X X X Extracts X X X X ..... nalty u/s 270A of the Act has rendered the entire proceedings invalid and untenable. AO has failed to identify the specific Clauses from Clause (a-f) of section 270A(9) of the Act. Therefore, respectfully following ITAT Pune and ITAT Mumbai decisions the AO is directed to delete the penalty under section 270A of the Act. Accordingly, grounds of appeal raised by the assessee are allowed. - Shri S.S. Godara, Judicial Member And Dr. Dipak P. Ripote, Accountant Member For the Assessee : Shri Suresh Gawali-AR. For the Revenue : Shri M.G. Jasnani-DR. ORDER PER DR. DIPAK P. RIPOTE, AM : These two appeals filed by the Assessee are directed against the separate orders of ld. Commissioner of Income Tax (Appeal) National Faceless Appeal Centre, Delh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on offered by the assesses. 2. The Assessee for A.Y. 2018-19 has raised the following grounds of appeal: 1. The learned CIT is not justified in raising penalty u/s 270A of Rs. 78,892/- on the ground that the assesses has furnish inaccurate particulars of Income without appreciating that the said levy of penalty was not justified in law. 2. The learned CIT failed to appreciate that before the CIT, the assesses had duly explained that reporting of income in his case was attributable to wrong action of tax consultant and all the material facts relating thereto along with substantiating evidences in form of complaint filed against Tax Consultant before Economic Wing of Police Department etc. were also furnished by the assesses and therefore, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct at the premises of Kishor Patil, who files IT returns of the salaried employees of various companies and PSUs. That survey collectively revealed calming of bogus deductions under Chapter Vl-A, i.e. deductions under section 80D, 80DDE, 80G, 80GG, 80E and 80EE and also claiming of bogus house property loss i.e. payments towards interest for borrowing loan by Mr. Patil in the IT Returns filed. The ITO (Inv.), along with his report also submitted a list of cases in which Mr. Patil admittedly filed IT returns making bogus claims. In that list, the name of the assessee was also mentioned. So it is ascertained that the assessee had filed return of income through Shri Kishor Patil and indulged in obtaining fraudulent refund by claiming deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d how the assessee has mis-reported the income. The AO has not identified the specific limb of section 270A(9) of the Act, either in the penalty order or in the assessment order which is applicable in the case of assessee. We find that ITAT Pune in the case of Kishor Digambar Patil(supra) has held that failure on the part of the AO to showcase which of the specific action of the assessee from Clause(a-f) of section 270A(9) was determinant before imposing the impugned penalty under section 270A of the Act has rendered the entire proceedings invalid and untenable. Similarly, ITAT Mumbai in the case of Saltwater Studio LLP (supra) has held as under : The question is whether the AO s action to levy penalty u/s 270A(9) of the Act is sustainable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levy penalty for misreporting (supra) it is discerned that he has failed to spell out as to how the assessee s case/additions falls within the ken of instances given in clause (a) to (f) of sub-section (9) of section 270A of the Act. Since AO failed to bring the addition/disallowance he made in quantum assessment, under the ken of (a) to (f) of the sub-section(9) of section 270A of the Act, the penalty levied for misreporting @ 200% cannot be sustained because it is trite law that penalty provisions have to be strictly interpreted. And therefore, taking into consideration, the facts and circumstances of the case, we find that the levy of penalty by the AO u/s 270A of the Act suffers from the vice of nonapplication of mind as well as violate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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