TMI Blog2022 (4) TMI 1086X X X X Extracts X X X X X X X X Extracts X X X X ..... nt 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. In fact, 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. Consequently, the impugned order under Section 270A of the Act is set aside and the respondents are directe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e dated 15th December, 2019 seeking to levy penalty under Section 270A read with Section 274 of the Act was issued by Respondent No.2 requiring the Petitioner to show cause as to why the penalty for under-reported income be not levied. 3. Learned counsel for the petitioner states that the Petitioner filed an application on 29th January, 2020 before the respondent No.2 in Form No.68 in terms of Section 270AA(2) seeking immunity from imposition of penalty under Section 270A of the Act. She states that the Respondent No.1 passed the impugned order dated 26th March, 2022 denying the immunity from penalty and prosecuting the Petitioner on the ground that since no order under Section 270AA had been passed by the jurisdictional Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioner has satisfied the aforesaid conditions, inasmuch as, (i) the tax has been paid on the additions; (ii) appeal has undisputedly not been filed; and (iii) penalty (as would be evident from the penalty notice) has been initiated on account of underreporting of income. 9. Consequently, this Court is of the view that the petitioner acquired a right to be granted immunity under Section 270AA of the Act. In fact, this Court, in Schneider Electric South East Asia (HQ) Pte Ltd. Vs. Asst. Commissioner of Income Tax International Taxation Circle 3(1)(2), New Delhi and Ors., WP(C) 5111/2022 , 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 Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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