https://www.taxtmi.com/caselaws?id=791527 Penalty under section 270A of the Income-tax Act, 1961 is valid only if the Assessing Officer records satisfaction or a direction during the assessment proceedings that income has been under-reported. Where the assessment order contains no such endorsement, and the penalty notice is shown to have been generated after the assessment order date despite being stated otherwise, the statutory precondition for initiation is not met. The omission at the assessment stage renders the penalty proceedings unsustainable and the penalty liable to be quashed in favour of the assessee. en-us Wed, 29 Apr 2026 00:00:00 +0530 Wed, 13 May 2026 08:36:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791527 Penalty under section 270A of the Income-tax Act, 1961 is valid only if the Assessing Officer records satisfaction or a direction during the assessment proceedings that income has been under-reported. Where the assessment order contains no such endorsement, and the penalty notice is shown to have been generated after the assessment order date despite being stated otherwise, the statutory precondition for initiation is not met. The omission at the assessment stage renders the penalty proceedings unsustainable and the penalty liable to be quashed in favour of the assessee. Case-Laws Income Tax Wed, 29 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791527