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Facts
The appeal was filed by the assessee against the order of the CIT(A) which upheld the penalty imposed by the Assessing Officer under section 270A of the Income Tax Act, 1961, for Assessment Year 2018-19. The penalty was imposed based on the assessment order dated 07.09.2021.
Held
The Tribunal considered the submissions and found merit in the assessee's arguments. It was held that the ingredients for imposing penalty under section 270A for under-reporting of income, stemming from mis-reporting, were not present in this case. The mistake was inadvertent, unintentional, and corrected promptly with taxes paid.
Key Issues
Whether penalty under section 270A is leviable when the assessee's mistake was inadvertent, unintentional, and corrected promptly.
Sections Cited
270A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH, ‘E’: NEW DELHI
Before: SHRI SATBEER SINGH GODARA
ORDER PER AMITABH SHUKLA, AM,
This appeal filed by the assessee is against order dated 10.06.2025 of National Faceless Appeal Centre/learned Commissioner of Income Tax (Appeals), New Delhi, [hereinafter referred to as ‘ld. CIT(A)] arising out of assessment order dated 07.09.2021 passed u/s 270A of the Income Tax Act, 1961 pertaining to Assessment Year 2018-19. The word ‘Act’ herein this order would mean Income Tax Act, 1961.
The ld. Assessing Officer passed order dated 07.09.2021 under section 270A for AY 2018-19. The ld. AO, inter alia, after considering reply of the assessee on the issue, imposed the penalty. The ld. CIT(A) confirmed the penalty order concurring with the findings of the ld. AO.
Per contra, the ld. DR placed reliance upon the order of the lower authorities.
We have heard the rival submissions in the light of the material placed on record. The ld. Counsel of the appellant assessee reiterated the arguments taken before the lower authorities and submitted that there is no case for imposition of any penalty. The ld. Counsel once again submitted that the inadvertent, unintentional, typographical mistake of inaccurate claim made by it was corrected soon upon its deduction and corresponding taxes were paid instantly. Upon consideration of the matter, we find merit in the arguments of the appellant assessee. We are of the considered view that the ingredients for imposition of penalty under section 270A of under reporting of income, which is inconsequence of mis-reporting of income are not available in the present case so as to attract imposition of penalty under section 270A of the Act. Accordingly, the orders of lower authorities is set-aside and the penalty under section 270A of the Act imposed vide order dated 07.09.2021 is directed to be deleted.
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In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 14th January, 2026.
Sd/- Sd/- [SATBEER SINGH GODARA] [AMITABH SHUKLA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 16.01.2026 Shekhar Copy forwarded to: 1. Appellant 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi,
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