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Facts
The assessee, a non-resident, sold a property and applied for a lower TDS deduction under section 197. The AO reopened the assessment under section 148 and accepted the assessee's filed return. However, a penalty was initiated under section 270A for alleged underreporting of income.
Held
The Tribunal noted that the AO accepted the assessee's return without additions and that taxes paid/deposited were reflected in Form 26AS. The revenue did not claim tax evasion, and all taxes were accepted. Therefore, the facts did not qualify for imposing penalty under section 270A.
Key Issues
Whether penalty under section 270A for underreporting or misreporting of income is leviable when the assessee acted bonafidely, TDS was deducted at a lower rate as per certificate, and the income was accepted by the AO in the assessment order.
Sections Cited
270A, 197, 148
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Income Tax Appellate Tribunal, “A” BENCH, MUMBAI
Before: SMT. BEENA PILLAI, JM & SHRI OMKARESHWAR CHIDARA, AM
(Assessment Year: 2017-18) Asif Hussain Shah Sayad Income Tax Ward 4(2)(1) Flat No. 45, Mumbai- 400021. 4th Floor, Silver Arch CHS. Ltd., Khira Nagar, Vs. S. V. Road, Santacruz West, Mumbai- 54. PAN : HDGPS7131J Appellant) : Respondent) Appellant /Assessee by : Ms. Mona Makwana Revenue / Respondent by : Shri Ram Krishn Kedia (SR. D.R.) Date of Hearing : 24.09.2024 Date of Pronouncement : 30.10.2024 O R D E R Per Beena Pillai, JM: Present penalty appeal is filed by the assessee against order dated 26/04/2024 passed by learnt CIT (A)-58, Mumbai for Assessment Year 2017-18 on following grounds of appeal:
4. Section 270A of the act, specifies penalty for underreporting and misreporting that reads as under: “270A. Penalty for under reporting and misreporting of income. (9) The cases of misreporting of income referred to in sub- section (8) shall be the following, namely:- (a) misrepresentation or suppression of facts; (b) failure to record investments in the books of account; (c) claim of expenditure not substantiated by any evidence; (d) recording of any false entry in the books of account; (e) failure to record any receipt in books of account having a bearing on total income; and (f) failure to report any international transaction or any transaction deemed to be an international transaction or any (Dy./Asstt. Registrar) ITAT, Mumbai