AO’s order imposing penalty under sec. 270A is appealable before CIT(A): Mumbai ITAT

Case Details: Desmond Savio Theodore Fernandes v. ITO - [2022] 138 taxmann.com 352 (Mumbai-Trib.)

Judiciary and Counsel Details

• • Pramod Kumar, Vice President & Sandeep Singh Karhail, Judicial Member
  • Dipesh M. Poptani for the Appellant.
  • T. Shankar for the Respondent.

Facts of the Case

The instant appeal was filed by the assessee against the penalty order passed by the Assessing Officer (AO) under section 270A. AO contended that assessee ought to have approached the CIT(A) first before moving to the Tribunal. However, assessee submitted that section 246A, which list out the appealable order before the CIT(A), does not refer to an order passed by the AO under section 270A.

ITAT Held

The Mumbai Tribunal held that objections taken by the AO was indeed correct. Section 246A(1)(q) specifically includes “an order imposing a penalty under chapter XXI”. Chapter XXI of the Income Tax Act, 1961 covers Sections 270 to 275. Thus, Section 270A dealing with underreporting and misreporting of income is duly covered.

Therefore, the appeal against an order imposing penalty under section 270A, as passed by the AO, is appealable before the Commissioner (Appeals).

As for the reference to the order passed under section 270A being appealable before the Tribunal, Section 253(1)(a) specifically provides reference to orders passed by the Commissioner (Appeals) only. To this limited extent, general provisions of the Section 246A(1)(q) must make way for the specific provisions of the Section 253(1)(a).