Section 270AA of the Income Tax Act

Income-tax Act, 2025: s.440

Section 270AA of the Income-tax Act, 1961 corresponds to section 440 (Immunity from imposition of penalty, etc) of the Income-tax Act, 2025.

Read section 440 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 270AA is PCIT v. Sahara India Life Insurance Co. Ltd. (432 ITR 84), cited in 185 of the 167 judgments on BharatTax that turn on this section.

Leading authorities on Section 270AA

PCIT v. Sahara India Life Insurance Co. Ltd.
432 ITR 84 · 2021 · High Court
185
citing judgments

The Assessing Officer's failure to specify the exact limb (i.e., concealment of income or furnishing inaccurate particulars) in the show-cause notice issued under Section 274 for penalty under Section 271(1)(c) vitiates the entire penalty proceedings.

Rajesh Kumar v. CIT
27 SCC 181 · 2007 · Reported
57
citing judgments

Where civil or evil consequences ensue from the action of a statutory authority, the principles of natural justice must be followed, even if not explicitly stated in the statute. Failure to comply with these principles may render a statute ultra vires Article 14 of the Constitution.

Mohd. Farhan A. Shaikh v. DCIT, Central Circle-1, Bengaluru
280 Taxmann 334 · 2021 · High Court
42
citing judgments
Prem Brothers Infrastructure LLP v. NFAC
142 Taxmann.com 38 · 2022 · High Court
32
citing judgments

When initiating penalty proceedings, the Assessing Officer (AO) must specify the limb of the charge, indicating whether the penalty is for concealment of income or furnishing inaccurate particulars. This requirement is essential for valid penalty proceedings.

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.

HCIL Arsspl Triveni (JV) v. ACIT (
274 ITR 603 · 2005 · High Court
21
citing judgments

An inaccurate claim made by the assessee cannot be treated as a case of giving inaccurate particulars of income for the purpose of imposing penalty.

CIT v. ECS Ltd.
336 ITR 162 · 2011 · High Court
21
citing judgments

The Assessing Officer's satisfaction for imposing a penalty under Section 271(1)(c) must be discernible from the assessment order, even if not expressly recorded in a specific format.

PCIT v. Rajkumar Gulab Badgujar
111 Taxmann.com 256 · 2019 · High Court
18
citing judgments

Penalty under section 271(1)(c) cannot be levied under Explanation 5A to section 271(1)(c) for income declared in a return filed under section 153C, as Explanation 5A is confined to the searched person and not to persons covered under section 153C. This applies even if no addition is made by the AO to the voluntarily declared income.

Mumbai) 3. ITO v. Rasiklal N Satra
98 ITD 335 · 2006 · ITAT
17
citing judgments

The exemption under section 54F(1) of the Income-tax Act, 1961, is available for capital gains arising from the transfer of a long-term capital asset that is not a residential house.

159 Taxman 26 (P & H) (iii) S.M.J. Housing v. CIT
111 Taxmann.com 257 · 2019 · Supreme Court
15
citing judgments

Judgments on Section 270AA

Pankaj Kumar, Muzaffarpur vs. Commissioner of Income Tax, Patna

In the result, all the four appeals of the assessee are allowed for statistical purposes

ITA 650/PAT/2024[2020-21]Status: DisposedITAT Patna21 Oct 2025AY 2020-21

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishrai.T.A. Nos.649, 645, 646 & 650/Pat/2024 Assessment Years: 2017–18, 2018–19, 2019–20 & 2020–21 Pankaj Kumar……..……………..………. …………………....Appellant Saraiyaganj, Muzaffarpur, Bihar-842001.. [Pan: Alipk3534A] Vs. Cit Patna……………......…..……………..………………….…..... Respondent Appearances By: Shri Amit Kamalia, Ca., Appeared On Behalf Of The Appellant. Shri Ashwani Kr. Singal, Jcit, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : October 16, 2025 Date Of Pronouncing The Order : October 21, 2025 आदेश / Order Per Sonjoy Sarma: These Four Captioned Appeals—Ita No. 649/Patna/2024 For A.Y. 2017–18, Ita No. 645/Patna/2024 For A.Y. 2018–19, Ita No. 646/Patna/2024 For A.Y. 2019–20 & Ita No. 650/Patna/2024 For A.Y. 2020–21—Are Filed By The Same Assessee Against The Orders Of The Learned Cit(A), Relating To Penalty Imposed Under Section 270A Of The Income-Tax Act, 1961, Arising Out Of The Respective Assessment Orders. Since The Issues Involved In All These Appeals Are Common Except For Variation In Figures & Assessment Years, They Were Heard Together & Are Being Disposed Of By This Common Order For The Sake Of Convenience. 2. At The Outset, It Is Noticed That There Is A Delay Of Four Days In Filing The Appeals Before The Tribunal. The Assessee Has Filed A Petition

Section 132Section 143(3)Section 153ASection 270A

Pankaj Kumar, Muzaffarpur vs. Comissioner of Income Tax, Patna

In the result, all the four appeals of the assessee are allowed for statistical purposes

ITA 649/PAT/2024[2017-18]Status: DisposedITAT Patna21 Oct 2025AY 2017-18

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishrai.T.A. Nos.649, 645, 646 & 650/Pat/2024 Assessment Years: 2017–18, 2018–19, 2019–20 & 2020–21 Pankaj Kumar……..……………..………. …………………....Appellant Saraiyaganj, Muzaffarpur, Bihar-842001.. [Pan: Alipk3534A] Vs. Cit Patna……………......…..……………..………………….…..... Respondent Appearances By: Shri Amit Kamalia, Ca., Appeared On Behalf Of The Appellant. Shri Ashwani Kr. Singal, Jcit, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : October 16, 2025 Date Of Pronouncing The Order : October 21, 2025 आदेश / Order Per Sonjoy Sarma: These Four Captioned Appeals—Ita No. 649/Patna/2024 For A.Y. 2017–18, Ita No. 645/Patna/2024 For A.Y. 2018–19, Ita No. 646/Patna/2024 For A.Y. 2019–20 & Ita No. 650/Patna/2024 For A.Y. 2020–21—Are Filed By The Same Assessee Against The Orders Of The Learned Cit(A), Relating To Penalty Imposed Under Section 270A Of The Income-Tax Act, 1961, Arising Out Of The Respective Assessment Orders. Since The Issues Involved In All These Appeals Are Common Except For Variation In Figures & Assessment Years, They Were Heard Together & Are Being Disposed Of By This Common Order For The Sake Of Convenience. 2. At The Outset, It Is Noticed That There Is A Delay Of Four Days In Filing The Appeals Before The Tribunal. The Assessee Has Filed A Petition

Section 132Section 143(3)Section 153ASection 270A

Pankaj Kumar, Muzaffarpur vs. Commissioner of Income Tax, Patna

In the result, all the four appeals of the assessee are allowed for statistical purposes

ITA 645/PAT/2024[2018-19]Status: DisposedITAT Patna21 Oct 2025AY 2018-19

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishrai.T.A. Nos.649, 645, 646 & 650/Pat/2024 Assessment Years: 2017–18, 2018–19, 2019–20 & 2020–21 Pankaj Kumar……..……………..………. …………………....Appellant Saraiyaganj, Muzaffarpur, Bihar-842001.. [Pan: Alipk3534A] Vs. Cit Patna……………......…..……………..………………….…..... Respondent Appearances By: Shri Amit Kamalia, Ca., Appeared On Behalf Of The Appellant. Shri Ashwani Kr. Singal, Jcit, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : October 16, 2025 Date Of Pronouncing The Order : October 21, 2025 आदेश / Order Per Sonjoy Sarma: These Four Captioned Appeals—Ita No. 649/Patna/2024 For A.Y. 2017–18, Ita No. 645/Patna/2024 For A.Y. 2018–19, Ita No. 646/Patna/2024 For A.Y. 2019–20 & Ita No. 650/Patna/2024 For A.Y. 2020–21—Are Filed By The Same Assessee Against The Orders Of The Learned Cit(A), Relating To Penalty Imposed Under Section 270A Of The Income-Tax Act, 1961, Arising Out Of The Respective Assessment Orders. Since The Issues Involved In All These Appeals Are Common Except For Variation In Figures & Assessment Years, They Were Heard Together & Are Being Disposed Of By This Common Order For The Sake Of Convenience. 2. At The Outset, It Is Noticed That There Is A Delay Of Four Days In Filing The Appeals Before The Tribunal. The Assessee Has Filed A Petition

Section 132Section 143(3)Section 153ASection 270A