Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Penallty u/s 270A

SUBHANKAR MULLICK (ACCOUNTANT) (104 Points)

24 January 2020

Hi.
my client faced scrutiny assessment for a.y 2017 18 in December 2019. ld ito disallowed section 80 p deduction and charged tax. ito also imposed penalty u/s 270 a . now the assessee paid full demand amount. so my question is what should do now to stop the penalty proceeding u/s 270a.

Reply
Follow
Share

7 Replies

Roshni (Studwnt) (1141 Points)
Replied 24 January 2020

No option you have to pay

Upgrade to CAclubindia Pro. Subscribe Now!

prashant nema (Advocate) (52 Points)
Replied 24 January 2020

file an application before AO as prescribed u/s 270AA of the Act

Section 270 read as under:

[1][270AA. Immunity from imposition of penalty, etc.

(1) An assessee may make an application[2] to the Assessing Officer to grant immunity from imposition of penalty under section 270A and initiation of proceedings under section 276C or section 276CC, if he fulfils the following conditions, namely:--

(a) the tax and interest payable as per the order of assessment or reassessment under sub-section (3) of section 143 or section 147, as the case may be, has been paid within the period specified in such notice of demand; and

(b) no appeal against the order referred to in clause (a) has been filed.

(2) An 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[3].

(3) The Assessing Officer shall, subject to fulfilment of the conditions specified in sub-section (1) and after the expiry of the period of filing the appeal as specified in clause (b) of sub-section (2) of section 249, grant immunity from imposition of penalty under section 270A and initiation of proceedings under section 276C or section 276CC, where the proceedings for penalty under section 270A has not been initiated under the circumstances referred to in sub-section (9) of the said section 270A.

(4) The Assessing Officer shall, within a period of one month from the end of the month in which the application under sub-section (1) is received, pass an order accepting or rejecting such application:

Provided that no order rejecting the application shall be passed unless the assessee has been given an opportunity of being heard.

(5) The order made under sub-section (4) shall be final.

(6) No appeal under section 246A or an application for revision under section 264 shall be admissible against the order of assessment or reassessment, referred to in clause (a) of sub-section (1), in a case where an order under sub-section (4) has been made accepting the application.

Roshni (Studwnt) (1141 Points)
Replied 24 January 2020

Correct make an application to AO if you are not appealing against the demand

Kapadia Pravin (17259 Points)
Replied 24 January 2020

@ Subhankar
May you clarify on what ground 80P deduction dis-allowance done by ITO and assessee accepted it.

What is the category of Assessee ?
is it Housing Society ??
Much depends on these factors

rama krishnan (12234 Points)
Replied 24 January 2020

Under which limb 270A penalty proceedings was initiated? is it under reporting or misreporting? if it was misreporting, then you are not eligible to avail benefits of 270aa. better pursue with the penalty proceedings

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

SUBHANKAR MULLICK (ACCOUNTANT) (104 Points)
Replied 24 January 2020

Misreporting