AJAY MAHESHWARI,NAGPUR vs. ACIT CIRCLE 2(1), NAGPUR

ITA 223/NAG/2025Status: DisposedITAT Nagpur19 May 2026AY 2018-1913 pages
AI SummaryAllowed

What were the facts?

The assessee revised their income tax return, significantly reducing the declared income by claiming a deduction for income received from a foreign company. The Assessing Officer added this amount back, considering it global income taxable in India, and levied a penalty for misreporting income. The CIT(A) upheld the penalty.

What did the Tribunal hold?

The Tribunal held that the assessee's claim was based on a debatable legal issue regarding Place of Effective Management (POEM) and relevant CBDT circulars, making their explanation bona fide. The Tribunal found no element of deliberate misrepresentation or suppression of facts to justify the penalty for misreporting.

What were the issues?

Whether the penalty for misreporting of income under Section 270A was rightly imposed when the assessee's claim was based on a bona fide interpretation of evolving POEM provisions and CBDT circulars.

Which sections of the Income-tax Act were involved?

Section 270A,Section 6,Section 139(5),Section 143(3),Section 274,Section 119

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR BENCH :: NAGPUR

Before: SHRI PAWAN SINGH & SHRI KHETTRA MOHAN ROY

For Appellant: Shri Ajay Maheshwari –
For Respondent: Shri Surjit Kumar Saha, Sr. DR
Hearing: 24.02.2026Pronounced: 19.05.2026

PER KHETTRA MOHAN ROY, AM:

These appeals filed by the same assessee are directed against separate orders of Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi, (for short, “CIT(A)”), both dated 07/02/2025 passed under section 250 of the Income Tax Act, 1961 (for short, “Act”) which are emanating from ITA Nos. 222 & 223/NAG/20245 (Ajay Maheshwari) different penalty orders passed u/s. 270A of the Act dated 12.07.2021 & 04.09.2021 for the Assessment Years 2017- 18 & 2018-19 respectively.

2.

Since the facts and issues involved in both the appeals are identical, they were clubbed together, heard conjointly, and are being disposed of by this consoli

The order continues below.

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