TaxTMI 
TaxTMI 
2024 (8) TMI 1233
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....e Act amounting to Rs. 8,16,895/- only. 3. The necessary facts are that the assessee in the present case is an individual who has not filed return of income u/s 139 of the Act for the year under consideration. As such, the assessee disclosed the income under the head 'salary' in response to the notices issued u/s 148 of the Act by furnishing form 16. Likewise, the AO during the assessment proceedings found that the assessee has claimed excessive deduction in Form - 16 u/s 24 of the Act for Rs. 74,951/- representing the interest on housing loan, which was added to the total income of the assessee. As such, the income was determined in the assessment framed u/s 147 of the Act at Rs. 58,70,680/- only. As the assessee did not file original ret....
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....over and above the sum of Rs. 2 lakhs allowed under the Act. Thus, the assessment was framed by the AO at Rs. 58,70680/- after making the addition of the disallowance of Rs. 74,951/-under section 24 of the Act representing the excessive interest claimed by the assessee. As per the AO, the income assessed under section 147 r.w.s. 144 of the Act represents the underreporting of income in pursuance to the provisions of section 270A(2) of the Act. Accordingly, the AO proposed to levy the penalty under section 270A of the Act on account of underreporting of income by issuing a show cause notice under section 274 of the Act. The assessee in response to show cause notice submitted that he has been filing the return of income under section 139 of t....
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....lities on which tax at source was duly deducted by the employer and deposited with the government exchequer on behalf of the assessee which was also reflecting in the record of the department. Accordingly, there was no loss to the revenue as far as the tax liability is concerned. The provisions of clause (a) of subsection 6 of section 270A of the Act provides that there will not be any under reporting of income if the assessee furnish explanation with respect to the income and discloses all the material facts regarding such income and the AO is satisfied that the explanation offered is bona fide. In the present case, the income of the assessee was subject to TDS and almost entire tax liability was already paid by way of TDS and the same was....
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....se of the assessee does not fall under any of the specific provision content in Section 270A(2) of the Act which deals with various circumstances relating to "under reporting of income". Therefore, since the assessee's case does not fall under sub-Section (2) of Section 270A, then the benefit of sub- Section (6) to Section 270A is also not available to the assessee. Therefore, the next issue for consideration is whether the assessee's case is one of misreporting of income and whether the case of assessee falls specifically under sub-Section (a) to Section 9 dealing with "misrepresentation or suppression of facts". Further, since sub- Section (a) to Section 270A specifically provides that "notwithstanding anything content in sub-Sect....
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....e consideration which had been received by the assessee on such sale of land. That, in our view, it would have been a case of misrepresentation or suppression of facts. However, once the sale consideration is reported in Form No. 26AS on the Government website and the amount of sale consideration has not been challenged / disputed by the Department and taxes has been withheld on such sale consideration by the purchaser of property under Section 194-IA of the Act, then, in our view, this is not case of misrepresentation or suppression of facts. In the instant case, the assessee was under a bona fide believe that once the correct income flowing from sale of property is duly reflecting in Form No. 26AS on the Government website and taxes have ....