ASMEETA INFRATECH LIMITED,BHIWANDI vs. ITO WARD 1(1), KALYAN, KALYAN

Facts

The assessee filed a return declaring NIL income. During assessment under section 143(3), an addition was made under 'Income from Other Sources'. Subsequently, a penalty under section 270A was levied for underreporting income, which the assessee attributed to a bonafide clerical and typographical error in not punching the income from other sources into the ITR, despite it being considered in the computation of income.

Held

The Tribunal held that the omission of income in the return was due to a bonafide and inadvertent typographical mistake. Relying on Supreme Court judgments, it was concluded that such human errors do not constitute underreporting or misreporting of income warranting a penalty under Section 270A.

Key Issues

Whether penalty under Section 270A is leviable for income omission due to a bonafide clerical/typographical error, or if such an error negates 'underreporting' or 'misreporting'.