Terai Fruits Company Vs. Income Tax Officer, Ward-1(1), Siliguri

Parties Involved

Facts Summary

The case of the assessee, Terai Fruits Company, was selected for assessment under section 148 of the Income Tax Act, 1961, as the return of income for the assessment year 2018-19 was not filed. The assessee had significant cash deposits and withdrawals during the financial year 2017-18 but filed the return of income only after receiving a notice under section 148, declaring a total income of Rs. 2,88,770/-. The assessee claimed that the partnership had dissolved due to the death of one of the partners, and the surviving partner became the sole proprietor. Penalty proceedings under section 270A were initiated for misreporting of income, and despite the assessee's request for immunity under section 270AA, the penalty was imposed due to non-compliance with the procedural requirement of filing Form No. 68.…

Legal Issues

• 1. Whether the order u/s 250 passed by the Hon'ble CIT(A) is against the principle of natural justice.
• 2. Whether the initiation of penalty proceeding by the Ld. AO for misreporting of income without reference to any clause of sub-section (9) of section 270A was bad in law.
• 3. Whether the Ld. CIT(A) ought to have cancelled the Penalty Order passed by the Ld. AO on the basis of invalid show cause notice u/s 274 of the Act.
• 4. Whether the Ld. AO ought not to have levied the penalty as the assessee had paid the demand tax within the due date and had applied for immunity from imposition of penalty u/s 270AA.
• 5. Whether the Ld. AO ought not to have rejected the application of the assessee u/s 270AA made in plain paper and not in Form No. 68 due to the ignorance of the assessee about the provisions of law.
• 6. Whether the Ld. AO, CIT(A) ought to have cancelled the penalty order of the Ld. AO as the same had been passed without specifying any specific charge which was incumbent on the Ld. AO.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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