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Facts
The assessee's assessment was completed under section 143(3) of the Income-tax Act, 1961, with disallowance of remuneration and interest paid to partners. The assessee paid the tax demand and interest, and subsequently requested the dropping of penalty proceedings under section 270A, citing eligibility for immunity under section 270AA. The Assessing Officer levied the penalty, and the CIT(A) confirmed the levy.
Held
The Tribunal held that the assessee failed to file a proper application for immunity under section 270AA of the Act in the prescribed format. The letter submitted by the assessee was merely an intimation of tax payment and did not meet the conditions for immunity, specifically regarding the filing of an appeal. Therefore, the claim for immunity could not be considered.
Key Issues
Whether the assessee is entitled to immunity from penalty under Section 270AA for non-filing of a proper application in the prescribed format.
Sections Cited
143(3), 270A, 270AA
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “CUTTACK” BENCH, CUTTACK
O R D E R PER PENCH:
This is an appeal filed by the assessee against the order of the ld. CIT (A), National Faceless Appeal Centre, Delhi in appeal no. ITBA/NFAC/S/250/2024-25/1065854310(1) dated 20.06.2024 for A.Y. 2017-18.
Shri Bibhuti Bhusan Panda represented on behalf of the assessee and Shri Nishanth Rao B represented on behalf of the Revenue.
It was submitted by the ld. AR that the assessment in the case of the assessee has been completed u/s 143(3) of the Income-tax Act, 1961 (the Act) and the remuneration and the salary/ remuneration and interest on capital paid to the partners had been disallowed. It was the submission that the assessee had paid the tax demand raised along with the interest of ₹3,06,290/- on 03.01.2020. It was the submission that the assessment order was passed on 16.12.2019. It was the “From Sri Ganesh Chit Fund Gundalavari Street, Hanuman Bazar, Berhampur(Gm), Odisha PAN-AAWFS5606G Asst. Yr.-2017-2018 To. The Income-Tax officer, Ward-2, Berhampur (Gm) Sub: Requesting for dropping of penalty U/S 270A of I.T. Act, 1961. Payment of Tax Vide Challan No-00001, Dated-03/01/2020. Ref: Notice No-ITBA/AST/S/156/2019-20/1022482847(1), Dated -16/12/2019 vide order No-ITBA/AST/S/143(3)/2019-20/1022482740(1), Dated-16/12/2019. Sir, With reference to above, the assessment was completed U/S 143(3) raised demand of Tax of Rs. 3,06,290/-. I have paid the demanded tax on 03/01/2020 vide challan No-00001, BSR Code-0320125. Herewith I upload the challan for your kind verification. I request your good self please kindly drop the penalty proceedings U/S 270A of I.T. Act, 1961 for which I shall be ever grateful. Place: Berhampur yours faithfully, Dt-14/01/2020 (P.Anant Kumar)”
It was the submission that the ld. AO ought to have granted the assessee the immunity from the levy of penalty u/s 270A of the Act.
In reply, the ld. Sr. DR vehemently supported the order of the ld. AO and ld. CIT (A). It was the submission that there was no application for the claim of immunity u/s 270AA of the Act filed by the assessee.
We have considered the rival submissions. A perusal of the Provision of Section 270AA(i) shows that ssessee is to make an application to the Assessing Officer to grant immunity from imposition of penalty under section 270A, if he fulfils the following conditions, namely (a) no appeal against the order referred to in clause (a) has been filed. In section 271AA(2) also refers to application referred to in sub-section (1) shall be made within one month from the end of the month in which the order referred to in clause (a) of sub-section (1) has been received and shall be made in such form and verified in such manner as may be prescribed. In the present case, admittedly no application for immunity has been filed in the prescribed format as required under sub-clause (2) of Section 270AA has been filed. The letter filed by the assessee, which has been extracted above is not in prescribed format. This is only the intimation, saying that the tax and the interest have been paid. There is no mentioned of the second condition being filing of the appeal. Admittedly, the assessee has paid the tax within the specified period. It is also an admitted fact that the assessee has not filed an appeal against the assessment order. However, as the assessee has not filed necessary application as per the provision of Section 270AA of the Act, cannot be brought into the play as the assessee has given any explanation in regard to penalty levied u/s 270A of the Act. We find no reason to
In the result, the appeal of the assessee is dismissed.
Order pronounced in the open court on 17.07.2025.