GRAND LEGACY,DEHRADUN vs. DCIT CIRCLE 1, DEHRADUN

ITA 229/DDN/2025Status: DisposedITAT Dehradun12 March 2026AY 2018-19Bench: SHRI MAHAVIR SINGH (Vice President), SHRI MANISH AGARWAL (Accountant Member)5 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the penalty levied under Section 270A was without basis because the notice initiating penalty proceedings did not specify the exact charge under Section 270A(9). Furthermore, the penalty was initiated for 'under-reporting as a consequence of mis-reporting' but levied for 'under-reporting of income', indicating a discrepancy in the charge.

What were the facts?

The assessee claimed a deduction under Section 80-IC of the Income Tax Act, which was disallowed by the Assessing Officer (AO) because the conditions for the deduction were not met. Consequently, the AO initiated penalty proceedings under Section 270A for under-reporting as a consequence of mis-reporting of income and levied a penalty of INR 67,820.

What were the issues?

The key legal issue was whether the penalty levied under Section 270A for under-reporting of income was valid when the penalty notice failed to specify the precise charge and there was a mismatch between the initiated charge and the levied charge.

Which sections of the Income-tax Act were involved?

Section 80-IC,Section 270A,Section 270A(9),Section 274,Section 143(3),Section 143(3A),Section 143(3B),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DEHRADUN “DB” BENCH: DEHRADUN

Before: SHRI MAHAVIR SINGH & SHRI MANISH AGARWAL

For Appellant: Shri Rajan Malik &, Shri A.K. Kashyap
For Respondent: Ms. Poonam Sharma, CIT DR
Hearing: 10.03.2026Pronounced: 12.03.2026

PER MANISH AGARWAL, AM : The present appeal is filed by assessee against the order dated 19.09.2025 by Ld. Commissioner of Income Tax (A), NFAC, Delhi [“Ld. CIT(A)”] in Appeal No. NFAC/2017-18/10101141 passed u/s 250 of the Income Tax Act, 1961 [“the Act”] arising out of assessment order dated 26.03.2021 passed u/s 143(3) r.w.s. 143(3A) & 143(3B) of the Act pertaining to Assessment Year 2018-19. 2. Brief facts of the case are that assessee had claimed deduction u/s 80-IC of the Act which was disallowed by the AO for the reason that the assessee has not fulfilled the conditions prescribed for claiming said deduction and initiated the penalty proceedings u/s 271A for

The order continues below.

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