2025 (4) TMI 590

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....lty of Rs. 498170/-. 2. The Appellant submits that on the facts and circumstances of the case, the said penalty levied be cancelled and relief be allowed. 3. The appellant further crave leave to add, alter or amend the facts and grounds of appeal before and during the appellate proceedings. 2. The appellant has taken an additional ground of appeal during the appeal hearing and the same is reproduced : "On the facts and circumstances of the case, the order levying penalty u/s 270A(9)(a) for under reporting of income inconsequence of misrepresentation of facts is not a valid order since the same is not in accordance with the law applicable." 3. As some background is required, the facts mentioned in assessment ....

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..... The appellant has inadvertently not included the interest income from bank which is reflected in Form 26AS while filing Return of Income. On noting this bank interest, the appellant paid taxes of Rs. 9,140/- alongwith interest b) Subsequently, the representative who looks after the affairs of appellant saw that part A as generated from TDS Traces site reflected total salary of Rs. 36,72,974/- which is different from the salary shown in the Return of Income filed by him. So, the appellant was under bonafide belief that the original Return of Income filed by him is incorrectly filed and the same needs to be revised. Hence, he filed a revised Return of Income declaring an income of Rs. 36,72,974/-. Thus, the appellant revised the Re....

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.... detailed paper book filed by him at the time of hearing proceedings. Reliance was placed on the Coordinate Bench decision of Saltwater Studio LLP Vs. NFAC 157 taxmann.com749 (Mum-Trib) where the Ld. AO failed to establish how appellant's case fell within the instances mentioned in the ambit of section 270(9) of the I.T.Act. 6. Per contra, Ld. DR has argued that the penalty order of Ld. AO and section 250 of the Act of Ld. CIT(A) are quite exhaustive and but for the meticulous examination by the Ld. AO, the appellant could not have admitted the additional income and paid the taxes. 7. Heard both sides. For the following reasons the penalty levied @ 200% on the suppressed tax of Rs. 2,49,085/- by the Ld. AO under section 270A of the Ac....