Case Title: G R Infra projects Limited vs Assistant Commissioner Of…
Case No: D.B Civil Writ Petition No. 5594/2023
Decided on: 2 January, 2024
CORAM: Justice Vijay Bishnoi, Justice Munnuri Laxman
Facts of the Case
The petitioner, G R Infraprojects Limited, filed a writ suit against the Assistant Commissioner of Income-Tax and other parties. The petitioner invoked Section 270A of the Income-tax Act, 1961 to seek relief from the penalty order dated 31.03.2023.The petitioner argued that the Act’s Section 270AA immunity from penalty applied to the withdrawal of its claim for the deduction of education cess.
Legal Provisions
Section 270A: Deals with penalties for under-reporting and misreporting of income. Section 270AA: Provides immunity from penalty under Section 270A if certain conditions are met. Section 155(18): Specifies the treatment of deductions of surcharge or cess not allowable under Section 40.
Issues
Whether the petitioner is eligible for relief from the Income-tax Act’s Section 270A penalty order? Whether the petitioner meets the requirements for immunity under Act Section 270AA? Whether is it legal for the Assessing Officer to have neglected to mention the pertinent Section 270A provision during the penalty proceedings?
Courts Analysis and Decision
In the judgment delivered on January 2, 2024, by Hon’ble Mr. Justice Vijay Bishnoi and Hon’ble Mr. Justice Munnuri Laxman, the court considered a writ petition filed by G R Infraprojects Limited against the Assistant Commissioner of Income-Tax and others. The petitioner sought relief, challenging the penalty order dated March 31, 2023, passed under Section 270A of the Income Tax Act, 1961. The court noted that the petitioner had withdrawn its claim for deduction of education cess, and in light of the insertion of sub-section (18) of Section 155, the petitioner was entitled to immunity from the penalty. The court allowed the writ petition, setting aside the penalty order and directing the granting of immunity under Section 270AA of the Income Tax Act. The court emphasized that the initiation of penalty proceedings lacked specification regarding the applicable sub-section of Section 270A and highlighted the Assessing Officer’s failure to decide the immunity application within the prescribed time. Consequently, the penalty order and demand notice were set aside, instructing the authorities to grant immunity to the petitioner-company under Section 270AA of the Income Tax Act.
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Written by- Komal Goswami
