Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2022 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (4) TMI 910 - DELHI HIGH COURTPenalty under Section 270A - Period of limitation for initiating penalty proceedings - under-reported income - HELD THAT:- This Court is of the view that it is only in cases where proceedings for levy of penalty have been initiated on account of alleged misreporting of income that an assessee is prohibited from applying and availing the benefit of immunity from penalty and prosecution under Section 270AA. Petitioner cannot be prejudiced by the inaction of the Assessing Officer in passing an order under Section 270AA of the Act within the statutory time limit as it is settled law that no prejudice can be caused to any assessee on account of delay/default on the part of the Revenue. In the present case, the petitioner has satisfied the aforesaid conditions, inasmuch as,the tax has been paid on the additions, appeal has undisputedly not been filed; and penalty (as would be evident from the penalty notice) has been initiated on account of “underreporting” of income. Consequently, this Court is of the view that the petitioner acquired a right to be granted immunity under Section 270AA of the Act. This Court, in Schneider Electric South East Asia (HQ) Pte Ltd. [2022 (3) TMI 1295 - DELHI HIGH COURT] has held, “This Court is further of the view that the impugned action of Respondent No.1 is contrary to the avowed Legislative intent of Section 270AA of the Act to encourage/incentivize a taxpayer to (i) fast-track settlement of issue, (ii) recover tax demand; and (iii) reduce protracted litigation.” The impugned order under Section 270A of the Act is set aside and the respondent is directed to grant immunity under Section 270AA of the Act to the petitioner. - Decided in favour of assessee.
|