2023 (5) TMI 1262

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....e assessee filed her return of income on 31.03.2018, declaring total income of Rs. 50,10,040/- and said return has been revised on 11.09.2018, declaring total income of Rs. 51,78,140/-. The case was selected for scrutiny and during the course of assessment proceedings, the AO noticed that the assessee has adopted annual value of house property at Rs. 5,40,000/-, instead of Rs. 8,40,000/- in the revised return filed for the relevant assessment year and therefore, called upon the assessee to explain as to why difference should not be added under the head income from house property. In response, the assessee submitted that the Accountant who filed the return has adopted incorrect figure while computing annual value of house property and thus, ....

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.... business. However, when the AO noticed above mistakes, he has fairly agreed and paid taxes on annual value of the house property and also accepted assessment of interest income under the head other sources. Therefore, it cannot be said that the assessee has under reported his income by misreporting income which warrants penalty u/s. 270A of the Act. 4. The ld. DR, supporting the order of the ld. CIT(A) submitted that as per the provisions of section 270A of the Act, if assessed income is more than the amount of returned income, then penalty is leviable u/s. 270A of the Act. In case the assessee accepted additional income, then it can avail immunity provided u/s. 270AA of the Act. Since, the assessee has misreported his income, the AO has ....