ORANGE CITY CREDIT CO-OP. SOCIETY LTD.,NAGPUR vs. INCOME TAX OFFICER, WARD 4(4), NAGPUR

ITA 19/NAG/2023Status: DisposedITAT Nagpur26 April 2024AY 2018-19Bench: HON’BLE SHRI S. S. GODARA (Judicial Member), SHRI G. D. PADMAHSHALI (Accountant Member)4 pages
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What did the Tribunal hold?

The tribunal held that the penalty was unwarranted as the error was a bonafide mistake by the auditor, supported by audited financial statements. Furthermore, the penalty notice failed to specify whether the offense was underreporting or misreporting of income.

What were the facts?

The assessee, a credit co-operative society, filed a return declaring a loss. During scrutiny assessment, its income was determined at a positive figure, leading to penalty proceedings. The penalty was levied for underreporting of income due to misreporting.

What were the issues?

Whether penalty under Section 270A is leviable when the underreporting is due to a bonafide mistake by a professional, and whether the penalty notice is valid if it fails to specify the exact charge of violation.

Which sections of the Income-tax Act were involved?

Section 270A,Section 274,Section 143(1),Section 143(3),Section 250

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Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR

Before: HON’BLE SHRI S. S. GODARA & SHRI G. D. PADMAHSHALI

Pronounced: 26/04/2024

PER G. D. PADMAHSHALI, AM; By this appeal the assessee challenges the DIN & order No. ITBA/NFAC/S/250/2022-23/1047262637(1) dt. 14/11/2022 of the National Faceless Appellate Centre [‘NFAC’ hereinafter] for assessment year 2018-19 [‘AY’ hereinafter] passed u/s 250 of the Income-tax Act, 1961 [‘the Act’ hereinafter] which in turn confirmed the order levying penalty passed u/s 270A of the Act by the National Faceless Assessment Centre [‘NeAC’ hereinafter].

The order continues below.

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