The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) held that the penalty imposed under Section 270A of the Income Tax Act, 1961 on grounds of non-disclosure of interest income in Return of Income (ROI) is valid.
BLPL Singapore Pte Ltd, the appellant assessee was a foreign company and tax resident of Singapore and was engaged in the business of carrying cargo in international traffic through vessels and containers, owned/chartered/hired.
The assessee had filed an appeal against an order of the assessing officer levied a penalty being 50% of the tax payable towards under-reporting of income on the ground that the assessee had not disclosed interest income in the return of income filed.
During the hearing of the appeal, none appeared for the assessee and Soumendu Kumar Dash appeared for the department.
The counsel for the respondent department contended that the assessee had filed revised computation of income including the interest income, but the assessee had not disclosed the interest income while computing the total income for taxation purposes. Thus the assessing officer made an addition to the total income of the assessee and taxed @ 15% passed the order under section 143(3)/144C(3) of the Income Tax Act, 1961.
The two-member bench comprising B.R. Baskaran (Accountant Member) and Pavan Kumar Gadale (Judicial Member) observed that a penalty order was passed by the Assessing Officer, Tax Circle at Mumbai, Whereas under the Provisions of 253(1)(a) of the Income Tax Act, 1961, the appeal to the appellate tribunal was filed against the order passed by the Commissioner of Income Tax Appeals under Section 270A of the Income Tax Act, 1961 by the Assessee.
It was also held that the penalty imposed by the assessing officer was valid and according to the relevant provisions of law.
Thus, the appeal filed by the assessee was dismissed.
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