ITA No.1054/Bang/2024

Parties Involved

Facts Summary

The assessee company, IIFL Samasta Finance Limited, filed its return of income for the assessment year 2020-21 on 13.02.2021. The Assessing Officer (AO) completed the assessment on 16.9.2022, disallowing two deductions: (a) Employees contribution of Provident Fund amounting to Rs.16,61,049/- under section 36(1)(va) of the Income Tax Act, 1961, and (b) the education cess amounting to Rs.1,22,79,936/- claimed as deduction under section 37 of the Act. The AO initiated penalty proceedings under section 270A of the Act, levying a total penalty of Rs.84,58,184/-. The assessee appealed to the Commissioner of Income Tax (Appeals)/National Faceless Assessment Centre (NFAC), which dismissed the appeal. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT). The Tribunal allowed the appeal, deleting the penalty levied.…

Legal Issues

• 1. Whether the penalty levied by the AO for under-reporting and misreporting of income is justified.
• 2. Whether the assessee is entitled to immunity from penalty under section 270AA of the Act.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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