TMI Blog2022 (6) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... f income, however, in peculiar facts of the present case, underreporting allegedly done by the assessee cannot amount to misreporting as the assessee had furnished all the details of the transactions relating to disallowance made under Section 14A of the Act and the AO as well as assessee has used the same details to arrive at different conclusions i.e. differing quantum of disallowances under Section 14A of the Act. This by no stretch of imagination can be held to be misreporting . This Court also finds that there is not even a whisper as to which limb of Section 270A of the Act is attracted and how the ingredient of sub-section (9) of Section 270A is satisfied. In the absence of such particulars, the mere reference to the word misrep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act has been passed by the Respondent on the application filed by the Petitioner seeking immunity under section 270AA of the Act. In the impugned penalty order, the Respondent No.1 has simply rejected the said application which otherwise is barred by limitation in terms of Section 270AA(4) of the Act, having been passed well beyond the period of one month from the end of the month in which the Petitioner had filed the application seeking immunity. 4. He further states that in the instant case, the only addition in the assessment order is in respect of disallowance under section 14A of the Act. The Petitioner itself has made a disallowance of Rs.3,20,14,010/- which was more than the exempt income of Rs.45,08,371/-. The Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itled to the benefit of immunity under Section 270AA of the Act. He submits that the assessee in the present case did not make the correct disallowance under Section 14A of the Act and thus the assessee not only underreported the income but also misreported the income and therefore, the AO has rightly imposed the penalty under Section 270A of the Act and declined the immunity under Section 270AA of the Act. 6. This court in the case of Schneider Electric South East Asia (HQ) PTE Ltd. Vs. ACIT, International Taxation Circle 3(1)(2), New Delhi and Ors. W.P.(C) No. 5111/2022 vide judgment dated 28.03.2022 observed as under:- 6. Having perused the impugned order dated 9 th March, 2022, this Court is of the view that the Respondents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated 09 th March, 2022 passed by Respondent No.1 under Section 270AA (4) of the Act is set aside and Respondent No.1 is directed to grant immunity under Section 270AA of the Act to the Petitioner. 7. This Court is of the opinion that the only addition in the assessment order framed by Respondent No.1 is in respect of disallowance under section 14A of the Act. The Petitioner has made a disallowance of Rs.3,20,14,010/- which was recomputed by the Assessing Officer at Rs.6,82,45,759/-. Thus, this is a case where the amount of underreporting of income is consequent to increase in the disallowance voluntarily estimated by the assessee. This court is conscious of the fact that there can be cases where underreporting of income may res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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