62 GE Capital US Holdings INC. vs. Dy. CIT (International Taxation)
[2024] 468 ITR 746 (Del)
A.Ys.: 2018–19 and 2019–20
Date of order: 31st May, 2024
Ss. 270A and 270AA of ITA 1961
Penalty — Notice — Validity — Condition precedent — Effect of s. 270A — Difference between under-reporting and misreporting of income — Failure to specify whether notice for levy of penalty for under-reporting or misreporting of income — Notices and levy of penalty invalid and unsustainable.
On writ petitions challenging the orders rejecting the applications of the assessee u/s. 270AA(4) of the Income-tax Act, 1961 for immunity from imposition of penalty and levy of penalty u/s. 270A for the A.Y. 2018–19 and 2019–20, the Delhi High Court, allowing the petition, and held as under:
“i) Section 271(1)(c) of the Income-tax Act, 1961 speaks of various eventualities and which may expose an assessee to face imposition of penalties. These range from failure to comply with notice u/s. 115WD or concealment or furnishing of inaccurate particulars of income or fringe benefits. Section 270A