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2023 (12) TMI 582 - ITAT CHENNAIPenalty levied u/s 270A - mis-reporting of income - penalty at 200% levied - assessee reply to SCN not accepted - HELD THAT:- In the draft assessment order, the Assessing Officer has proposed additions to be made and the assessee has accepted the proposed addition and paid the taxes. Further, against the show-cause notice issued under section 270A of the Act, the assessee has furnished the reply, which was considered by the Assessing Officer, but was not accepted. On perusal of the penalty order, we find that the AO has not recorded what the reply was furnished by the assessee against the show-cause notice issued u/s 270A of the Act and why it was not acceptable. Moreover, the Assessing Officer has mentioned any reason for levying penalty at 200%. AO has simply recorded that 200% of penalty has been levied for the tax payable on mis-reporting of income. When the assessee has furnished his explanation in response to the show-cause notice, it is the duty of the Assessing Officer to consider and record as to why the reply is not acceptable. However, in the penalty order, the Assessing Officer has not discussed anything and simply stated that “the reply of the assessee is considered and is not acceptable” is not correct. We are of the opinion that the penalty order passed by the Assessing Officer and confirmed by the ld. CIT(A) cannot survive. Thus, the penalty levied under section 270A of the Act stands deleted. Assessee appeal allowed.
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