ITAT adjudicated a tax penalty case concerning undisclosed...

ITAT adjudicated a tax penalty case concerning undisclosed turnover for AY 2019-20. The tribunal held that penalty u/s 270A cannot be levied when income is estimated and accepted by the Assessing Officer (AO). The tribunal emphasized that for penalty imposition, specific conditions must be strictly followed, and mere declaration of additional income does not automatically constitute misreporting. The AO failed to communicate specific grounds for penalty, violating principles of natural justice. The penalty is discretionary, and the primary onus lies on revenue to prove default. Given the assessee's bona fide disclosure and absence of adverse findings, the tribunal decided against revenue, effectively quashing the proposed penalty.