MRINALINI JAYANT PURANIK,PUNE vs. ITO, WARD-2(2), PUNE, PUNE

Facts

The assessee, an individual, did not file her return of income for assessment year 2019-20, despite receiving income of Rs. 2,63,15,529/-. After a notice under Section 147 of the Income Tax Act, the assessee filed a return declaring an income of Rs. 70,13,970/-. The Assessing Officer accepted the returned income but initiated penalty proceedings under Section 270A.

Held

The Tribunal held that the assessee had filed an application for immunity under Section 270AA of the Act, but the Assessing Officer failed to pass an order within the stipulated time. Following the Delhi High Court's decisions in similar cases, the Tribunal directed the Assessing Officer to grant immunity to the assessee and cancel the penalty.

Key Issues

Whether the penalty levied under Section 270A of the Income Tax Act is justified when the assessee applied for immunity under Section 270AA and the Assessing Officer failed to adjudicate the application within the prescribed time.