← All Phrases

“under-reporting of income”

PenaltySection 270ASection 270A402 judgments

The decision most relied on for under-reporting of income is CIT v. Surendra Prasad Agrawal (275 ITR 113), cited in 38 judgments on BharatTax.

Leading authorities on under-reporting of income

CIT v. Surendra Prasad Agrawal
275 ITR 113 · 2005 · High Court
38
citing judgments

The omission by an Income Tax Officer to initiate penalty proceedings during the assessment, when there is an observation of under-reporting or mis-reporting of income, renders the assessment order erroneous and prejudicial to the interests of the Revenue, granting the Commissioner jurisdiction to revise such an order under Section 263.

Schneider Electric South East Asia (HQ) PTE Ltd. v. Commissioner of Income Tax (International Taxation) & Ors.
443 ITR 186 · 2022 · High Court
29
citing judgments

Penalty under Section 270A of the Income Tax Act, 1961, cannot be imposed if the Assessing Officer fails to specify which clause under Section 270A(9) applies and fails to show cause to the assessee accordingly. Strict adherence to the conditions of Section 270A is mandatory for its applicability.

Alrameez Construction (P.) Ltd. v. NFAC
152 Taxmann.com 382 · 2023 · ITAT
14
citing judgments

Penalty under Section 270A for under-reporting or mis-reporting of income cannot be sustained if additions are made under Section 56(2)(x) and the penalty notice fails to specify the limb under which proceedings are initiated.

Company Limited 432 ITR 84 (Del); 4. Schneider Electric South East Asia (HQ) Pte. Ltd. v. ACIT
145 Taxmann.com 665 · 2022 · High Court
13
citing judgments

Immunity from penalty under Section 270AA may be granted if the assessment order is silent on how the ingredients of Section 270A(9) are satisfied, and the penalty notice fails to specify whether the penalty is for 'under-reporting' or 'misreporting' of income.

GR Infraprojects Ltd. v. ACIT
158 Taxmann.com 80 · 2024 · High Court
11
citing judgments

Penalty under section 270A cannot be sustained without the Assessing Officer specifying the exact charge against the assessee, including which part of section 270A(9) is attracted. Immunity under section 270AA may be granted if the Assessing Officer fails to specify the relevant sub-clause of section 270A(9) or mechanically passes an order without considering the assessee's replies.

DCIT v. Chakradhar Contractors and Engineers (P.) Ltd.
171 Taxmann.com 133 · 2025 · Reported
10
citing judgments

Penalty under section 270A is not leviable in the absence of specifying the sub-clause of section 270A(9) under which the penalty is initiated.

Judgments citing under-reporting of income

Jubilant Generics Ltd., Noida vs. ACIT, Circle- 5(1)(1), G.B. Nagar

In the result, the appeal of the assessee is partly allowed for

ITA 2004/DEL/2022[2018-19]Status: DisposedITAT Delhi24 Sept 2025AY 2018-19

Bench: Shri Yogesh Kumar U.S. & Shri Avdhesh Kumar Mishra

Section 143(3)Section 144BSection 92C

case and in law, the AD erred in initiating penalty proceedings under Section 270A of the Act on arbitrary premise that there is under-reporting of Income done by the Appellant.” Facts of the case: 3. The relevant facts giving rise to this appeal are that the assessee, engaged

Mcm Developers, Aurangabad vs. DCIT. Central Circle-1, Aurangabad

In the result, the appeal filed by the assessee is allowed

ITA 362/PUN/2025[2018-2019]Status: DisposedITAT Pune17 Sept 2025AY 2018-2019

Bench: SHRI MANISH BORAD (Accountant Member), SHRI VINAY BHAMORE (Judicial Member)

For Appellant: Shri Pramod ShingteFor Respondent: Shri Amol Khairnar
Section 143(3)Section 153ASection 153CSection 154Section 269SSection 270ASection 271DSection 40A(3)

made under the head Profits and gains of business and profession. Penalty proceedings u/s 270A of Income Tax Act are hereby initiated for under-reporting of income which is in consequence 4 of misreporting thereof. Further, as the assessee failed to comply the provision of section 269ST of the I.T.Act ... made under the head Profits and gains of business and profession. Penalty proceedings u/s 270A of Income Tax Act are hereby initiated for under-reporting of income which is in consequence of misreporting thereof. Further, as the assessee failed to comply the provision of section 269SS of the I.T.Act

Tridev Ispat Pvt. Ltd., Kolkata vs. DCIT, Central Circle-2, Raipur

Appeals of the assessee are allowed for statistical purposes

ITA 427/RPR/2025[2020-21]Status: DisposedITAT Raipur16 Sept 2025AY 2020-21

Bench: Hon’Ble Shri Partha Sarathi Chaudhury & Shri G. D. Padmahshali

For Appellant: Mr Subash Agarwal [‘Ld. AR’]For Respondent: Dr. Priyanka Patel [‘Ld. DR’]
Section 10A(3)Section 132Section 153ASection 246ASection 250Section 251Section 270ASection 271ASection 274Section 40A(3)

issued and in the absence of convincing explanation a penalty equal to 200% of tax sought to have evaded on account of under-reporting of income in consequence of mis-reporting was levied by an order dt. 27/03/2022 framed u/s 270A of the Act. AY 2020-21 7. The assessment

Tridev Ispat Pvt. Ltd., Kolkata vs. DCIT, Central Circle (2), Raipur

Appeals of the assessee are allowed for statistical purposes

ITA 426/RPR/2025[2019-20]Status: DisposedITAT Raipur16 Sept 2025AY 2019-20

Bench: Hon’Ble Shri Partha Sarathi Chaudhury & Shri G. D. Padmahshali

For Appellant: Mr Subash Agarwal [‘Ld. AR’]For Respondent: Dr. Priyanka Patel [‘Ld. DR’]
Section 10A(3)Section 132Section 153ASection 246ASection 250Section 251Section 270ASection 271ASection 274Section 40A(3)

issued and in the absence of convincing explanation a penalty equal to 200% of tax sought to have evaded on account of under-reporting of income in consequence of mis-reporting was levied by an order dt. 27/03/2022 framed u/s 270A of the Act. AY 2020-21 7. The assessment

Srini Pharmaceuticals Private Limited, Hyderabad vs. DCIT., Central Circle-2(3), Hyderabad

In the result appeal of the assessee is allowed

ITA 1121/HYD/2025[2012-13]Status: DisposedITAT Hyderabad12 Sept 2025AY 2012-13

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: CA, MV PrasadFor Respondent: Dr. Sachin Kumar, Sr. AR
Section 143(3)Section 271(1)(c)Section 274Section 35

details mentioned in ITR were found to be incorrect or erroneous, penalty under section 270A was not leviable for under-reporting of income”. This legal proposition is further supported by the decision of Hon’ble Supreme Court in the case of CIT vs., Reliance Petroproducts (P.) Ltd., (supra), where

United Steel Allied Industries Pvt Limited, Hyderabad vs. DCIT., Circle-8(1), Hyderabad

In the result, appeal of the assessee is allowed

ITA 908/HYD/2025[2017-18]Status: DisposedITAT Hyderabad10 Sept 2025AY 2017-18

Bench: Shri Vijay Pal Rao & Shri Manjunatha G

For Appellant: CA, M Poorna Chander RaoFor Respondent: Sri Siva Prasad, SV, Sr. AR
Section 143(1)Section 270ASection 274

preferred appeal before the CIT(A). Before the CIT(A), the assessee company has challenged penalty levied by the Assessing Officer for under-reporting of income on multiple grounds including for not recording satisfaction by the Assessing Officer before initiation of penalty proceedings and further, on merit on the ground ... indexation has been applied for financial year 2008-2009, which resulted in computation of excess loss and thus, it is a case of under-reporting of income and accordingly, there is no error in the reasons 5 ITA.No.908/Hyd./2025 given by the Assessing Officer to levy penalty of Rs.1

Capacite Infraprojects Limited, Mumbai vs. ACIT/DCIT Central Circle 1(2), Mumbai

The appeal of the assessee are allowed in above terms

ITA 6315/MUM/2024[2017-18]Status: DisposedITAT Mumbai10 Sept 2025AY 2017-18

Bench: Shri. Om Prakash Kant & Shri. Raj Kumar Chauhan

Section 115JSection 132Section 153ASection 23(1)Section 250Section 270ASection 36(1)(VA)Section 9

misreporting of income. As per section 270A of the Act, the AO may, during the course of assessment proceedings, initiate penalty proceedings for under-reporting of income and the assesse shall be liable to pay a penalty in addition to tax, if any, on the under-reported income. From ... penalty order it is noted that the AO has levied penalty u/s. 270A for under-reporting of income consequence to mis-reporting. Section 270A(8) states that: "Notwithstanding anything contained in sub-section (6) or sub- section (7), where under-reported income is in consequence of any misreporting thereof

Capacite Infraprojects Limited, Mumbai vs. ACIT/DCIT Central Circle 1(2) Mumbai, Mumbai

The appeal of the assessee are allowed in above terms

ITA 6309/MUM/2024[2018-19]Status: DisposedITAT Mumbai10 Sept 2025AY 2018-19

Bench: Shri. Om Prakash Kant & Shri. Raj Kumar Chauhan

Section 115JSection 132Section 153ASection 23(1)Section 250Section 270ASection 36(1)(VA)Section 9

misreporting of income. As per section 270A of the Act, the AO may, during the course of assessment proceedings, initiate penalty proceedings for under-reporting of income and the assesse shall be liable to pay a penalty in addition to tax, if any, on the under-reported income. From ... penalty order it is noted that the AO has levied penalty u/s. 270A for under-reporting of income consequence to mis-reporting. Section 270A(8) states that: "Notwithstanding anything contained in sub-section (6) or sub- section (7), where under-reported income is in consequence of any misreporting thereof

Kanodia Technoplast Ltd, Delhi vs. ACIT, Central Circle-19, Delhi

In the result, the penalty levied u/s 270A of the Act is

ITA 1355/DEL/2025[2019-20]Status: DisposedITAT Delhi10 Sept 2025AY 2019-20

Bench: Sh. Sudhir Kumar & Sh. Manish Agarwal

Section 132ASection 139(5)Section 142(1)Section 153ASection 270Section 270ASection 274Section 37

income is understated because of wrong claim regardless of bonafide. The levy of penalty for misreporting attracts higher penalty whereas the same for under-reporting of income is at a lower rate. Sub section (1) provides that the Assessing Officer and other higher Income Tax authorities may, during the course ... instant case, the AO has held the additional income determined in the assessment proceeding by the department as under-reporting of income and accordingly, levied penalty under section 270A of the Act.” 9. In the instant case the AO has made the addition of Rs.8,84,936/-on account

Arusuvai Food Processors Pvt. Ltd., Salem vs. DCIT, Circle-1(1), Salem

In the result, appeal filed by the assessee is allowed

ITA 416/CHNY/2025[2017-18]Status: DisposedITAT Chennai28 Aug 2025AY 2017-18

Bench: Shri Aby T. Varkey & Shri Jagadish

For Appellant: Mr.D. Anand, Advocate
Section 133(6)Section 142(1)Section 143(3)Section 264Section 270ASection 270A(1)Section 270A(9)(a)Section 270A(9)(c)Section 271Section 41(1)

Officer, Commissioner (Appeals), Principal Commissioner or Commissioner may, during the course of any proceedings under this Act, direct that any person who has under-reported his income shall be liable to pay penalty in accordance with the provisions of this section.”[emphasis given] 3. According to the Ld.AR ... assessee has been called upon to defend the proposed penalty viz ‘underreporting and misreporting of income’ which the AO might have proposed as “under-reporting of income its income in consequent of misreporting of income” which falls under sub-section (9) of section 270A of the Act. For easy reference

The Assistant Commissioner of Income Tax, Circle-2(1), Vijayawada vs. Eswara Prasad Nadipalli, Vijayawada

In the result appeal filed by the revenue is dismissed

ITA 99/VIZ/2025[2018-19]Status: DisposedITAT Visakhapatnam22 Aug 2025AY 2018-19

Bench: Shri Ravish Sood, Hon’Ble & Shri S Balakrishnan, Hon’Ble

Section 139(1)Section 142(1)Section 147Section 148Section 270A

observed that there is no difference between returned income and the assessed income attracting the provisions of levying penalty under section 270A for under-reporting of income. We are in agreement with the findings of the Ld. CIT(A) and hence no interference in the order

Veera Venkata Ramakrishna Mohan Rao Koduri, East Godhavari vs. ACIT, Cirlce - 1, Rajahmundry

In the result, appeal filed by the assessee is allowed

ITA 291/VIZ/2025[2019-20]Status: DisposedITAT Visakhapatnam22 Aug 2025AY 2019-20

Bench: Shri Ravish Sood, Hon’Ble & Shri S Balakrishnan, Hon’Bleआईटीए. नं. / Ita Nos. 290 & 291/Viz/2025 निर्धारण वर्ा/ Assessment Years:2018-19 & 2019-20) Veera Venkata Ramakrishna V. Acit – Circle – 1 Mohana Rao Koduri Ayakkar Bhawan Flat No. 201, Sri Towers Nh-16 Veerabadhrapuram Venkateswara Nagar Rajahmundry – 533105 Syamalanagar Andhra Pradesh East Godavari District - 533103 Andhra Pradesh [Pan:Afrpk0888C] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आईटीए. नं. / Ita Nos. 293 & 294/Viz/2025 निर्धारणवर्ा/ Assessment Years:2018-19 & 2019-20) Satya Venkata Krishna Ravi V. Acit – Circle – 1 Prasad Koduri Ayakkar Bhawan 81-10-3/6, Venkateswaranagar Veerabadhrapuram Near Ima Halla, Danavaipeta Rajahmundry – 533105 East Godavari District Andhra Pradesh Andhra Pradesh [Pan:Afrpk0889D] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) करदाता का प्रतततितित्व/ Assessee Represented By : Smt Hemalatha K, Ca राजस्व का प्रतततितित्व/ Department Represented By : Shri Badicala Yadagiri, Cit(Dr)

Section 132Section 143(2)Section 153Section 153CSection 263Section 270A

Subsequently, Ld.Pr.CIT in exercising of powers vested under section 263 of the Act after examining the assessment records found that the assessee has under-reported the income to the extent of Rs.19,64,730/- which attracts penalty under section 270A of the Act of Rs.2,49,991/- excluding interest ... assessment, which case does not fall under any of the 7 clauses of 270A(2) (a) to(g) to be termed as under-reporting of income, and hence, the intention of Ld. PCIT to initiate penalty u/s 270A is not in accordance with law: 7. For these and other reasons

Veera Venkata Ramakrishna Mohana Rao Koduri, Rajahmundry vs. ACIT, Circle - 1, Rajahmundry

In the result, appeal filed by the assessee is allowed

ITA 290/VIZ/2025[2018-19]Status: DisposedITAT Visakhapatnam22 Aug 2025AY 2018-19

Bench: Shri Ravish Sood, Hon’Ble & Shri S Balakrishnan, Hon’Bleआईटीए. नं. / Ita Nos. 290 & 291/Viz/2025 निर्धारण वर्ा/ Assessment Years:2018-19 & 2019-20) Veera Venkata Ramakrishna V. Acit – Circle – 1 Mohana Rao Koduri Ayakkar Bhawan Flat No. 201, Sri Towers Nh-16 Veerabadhrapuram Venkateswara Nagar Rajahmundry – 533105 Syamalanagar Andhra Pradesh East Godavari District - 533103 Andhra Pradesh [Pan:Afrpk0888C] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आईटीए. नं. / Ita Nos. 293 & 294/Viz/2025 निर्धारणवर्ा/ Assessment Years:2018-19 & 2019-20) Satya Venkata Krishna Ravi V. Acit – Circle – 1 Prasad Koduri Ayakkar Bhawan 81-10-3/6, Venkateswaranagar Veerabadhrapuram Near Ima Halla, Danavaipeta Rajahmundry – 533105 East Godavari District Andhra Pradesh Andhra Pradesh [Pan:Afrpk0889D] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) करदाता का प्रतततितित्व/ Assessee Represented By : Smt Hemalatha K, Ca राजस्व का प्रतततितित्व/ Department Represented By : Shri Badicala Yadagiri, Cit(Dr)

Section 132Section 143(2)Section 153Section 153CSection 263Section 270A

Subsequently, Ld.Pr.CIT in exercising of powers vested under section 263 of the Act after examining the assessment records found that the assessee has under-reported the income to the extent of Rs.19,64,730/- which attracts penalty under section 270A of the Act of Rs.2,49,991/- excluding interest ... assessment, which case does not fall under any of the 7 clauses of 270A(2) (a) to(g) to be termed as under-reporting of income, and hence, the intention of Ld. PCIT to initiate penalty u/s 270A is not in accordance with law: 7. For these and other reasons

Goldman Sachs (India) Finance Private Limited, Mumbai vs. Assessment Unit, Income-Tax Department, New Delhi

In the result, the appeal by the assessee is partly allowed for statistical

ITA 6766/MUM/2024[AY 2021-22]Status: DisposedITAT Mumbai22 Aug 2025

Bench: Shri Narendra Kumar Billaiyashri Sandeep Singh Karhail

For Appellant: Shri Madhur AgrawalFor Respondent: Ms. Neena Jeph, CIT-DR
Section 142(1)Section 143(1)Section 143(1)(a)Section 143(2)Section 143(3)Section 144C(1)Section 144C(5)Section 253Section 32Section 37(1)

case and in law, the learned AO has erred in proposing to initiate penalty proceedings under section 270A of the Act for under-reporting of income. The Appellant craves leave to add, alter, vary, omit, substitute or amend any or all of the above grounds of appeal, at any time

Income Tax Officer, C.R. Building, ITO vs. Sunita Gold and Diamonds Pvt Ltd, New Delhi

ITA 4039/DEL/2024[2017-18]Status: DisposedITAT Delhi21 Aug 2025AY 2017-18

Bench: Ms. Madhumita Roy & Shri Naveen Chandra

For Appellant: Sh. Upvan Gupta, AdvocateFor Respondent: Sh. Manish Gupta, Sr. DR
Section 142(1)Section 143(2)Section 143(3)Section 68

Page 1 ITA No.4039/Del/2024 Sunita Gold and Diamonds Pvt. Ltd. (AY: 2017-18) THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH

Pannivizha Service Cooperative Bank Ltd 891, M G Road Pannivizha vs. ITO, Ward 2, Kollam

In the result, ITA No. 531/Coch/2025 (Assessment Year 2018-2019) and ITA No

ITA 532/COCH/2025[2020-21]Status: DisposedITAT Cochin20 Aug 2025AY 2020-21

Bench: SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri K. Krishna Kumar, CAFor Respondent: Ms. Neethu S, Sr. DR
Section 250Section 270ASection 271(1)(c)Section 80PSection 80P(2)(a)Section 80P(2)(d)

identical to those prevailing in the Assessment Year 2011-2012, penalty under section 270A of the Act was levied on the Assessee for ‘under-reporting’ of income. Accordingly, both the sides adopted the submissions made in relation to appeal for the Assessment Year 2011-2012 and reiterated the stand taken ... addition, the Learned Departmental Representative placed reliance upon provisions contained in 270A of the Act providing for levy of penalty in case of under-reporting of income, the relevant extract of which reads as under: “270A. Penalty for under-reporting and misreporting of income. (1) The Assessing Officer

Pannivizha Service Cooperative Bank Ltd 891, M G Road, Pannivizha vs. ITO, Ward 2, Kollam

In the result, ITA No. 531/Coch/2025 (Assessment Year 2018-2019) and ITA No

ITA 531/COCH/2025[2018-19]Status: DisposedITAT Cochin20 Aug 2025AY 2018-19

Bench: SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri K. Krishna Kumar, CAFor Respondent: Ms. Neethu S, Sr. DR
Section 250Section 270ASection 271(1)(c)Section 80PSection 80P(2)(a)Section 80P(2)(d)

identical to those prevailing in the Assessment Year 2011-2012, penalty under section 270A of the Act was levied on the Assessee for ‘under-reporting’ of income. Accordingly, both the sides adopted the submissions made in relation to appeal for the Assessment Year 2011-2012 and reiterated the stand taken ... addition, the Learned Departmental Representative placed reliance upon provisions contained in 270A of the Act providing for levy of penalty in case of under-reporting of income, the relevant extract of which reads as under: “270A. Penalty for under-reporting and misreporting of income. (1) The Assessing Officer

Pannivizha Service Cooperative Bank Ltd 891, M G Road Pannivizha vs. ITO, Ward 2, Kollam

In the result, ITA No. 531/Coch/2025 (Assessment Year 2018-2019) and ITA No

ITA 530/COCH/2025[2014-15]Status: DisposedITAT Cochin20 Aug 2025AY 2014-15

Bench: SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri K. Krishna Kumar, CAFor Respondent: Ms. Neethu S, Sr. DR
Section 250Section 270ASection 271(1)(c)Section 80PSection 80P(2)(a)Section 80P(2)(d)

identical to those prevailing in the Assessment Year 2011-2012, penalty under section 270A of the Act was levied on the Assessee for ‘under-reporting’ of income. Accordingly, both the sides adopted the submissions made in relation to appeal for the Assessment Year 2011-2012 and reiterated the stand taken ... addition, the Learned Departmental Representative placed reliance upon provisions contained in 270A of the Act providing for levy of penalty in case of under-reporting of income, the relevant extract of which reads as under: “270A. Penalty for under-reporting and misreporting of income. (1) The Assessing Officer

Pannivizha Service Cooperative Bank Ltd 891, M G Road, Pannivizha vs. ITO, Ward 2, Kollam

In the result, ITA No. 531/Coch/2025 (Assessment Year 2018-2019) and ITA No

ITA 529/COCH/2025[2013-14]Status: DisposedITAT Cochin20 Aug 2025AY 2013-14

Bench: SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri K. Krishna Kumar, CAFor Respondent: Ms. Neethu S, Sr. DR
Section 250Section 270ASection 271(1)(c)Section 80PSection 80P(2)(a)Section 80P(2)(d)

identical to those prevailing in the Assessment Year 2011-2012, penalty under section 270A of the Act was levied on the Assessee for ‘under-reporting’ of income. Accordingly, both the sides adopted the submissions made in relation to appeal for the Assessment Year 2011-2012 and reiterated the stand taken ... addition, the Learned Departmental Representative placed reliance upon provisions contained in 270A of the Act providing for levy of penalty in case of under-reporting of income, the relevant extract of which reads as under: “270A. Penalty for under-reporting and misreporting of income. (1) The Assessing Officer

Pannivizha Service Cooperative Bank Ltd 891, M G Road Pannivizha vs. ITO, Ward 2, Kollam

In the result, ITA No. 531/Coch/2025 (Assessment Year 2018-2019) and ITA No

ITA 528/COCH/2025[2012-13]Status: DisposedITAT Cochin20 Aug 2025AY 2012-13

Bench: SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY (Judicial Member)

For Appellant: Shri K. Krishna Kumar, CAFor Respondent: Ms. Neethu S, Sr. DR
Section 250Section 270ASection 271(1)(c)Section 80PSection 80P(2)(a)Section 80P(2)(d)

identical to those prevailing in the Assessment Year 2011-2012, penalty under section 270A of the Act was levied on the Assessee for ‘under-reporting’ of income. Accordingly, both the sides adopted the submissions made in relation to appeal for the Assessment Year 2011-2012 and reiterated the stand taken ... addition, the Learned Departmental Representative placed reliance upon provisions contained in 270A of the Act providing for levy of penalty in case of under-reporting of income, the relevant extract of which reads as under: “270A. Penalty for under-reporting and misreporting of income. (1) The Assessing Officer