2025 (5) TMI 1178

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....penalty under section 270A of the Income Tax Act, 1961 (hereinafter 'the Act'). 2. The brief facts of the case are that no return of income was filed by the assessee for A.Y. 2017-18. On the basis of information that the assessee had purchased as well as sold certain immovable properties, the case was reopened under section 147 of the Act. In response to notice under section 148 of the Act dated 25.03.2021, the assessee had filed return of income on 17.04.2021 declaring income of Rs. 51,67,240/-. The Assessing Officer found that the assessee had duly disclosed the capital gain arising on sale of property and, therefore, the returned income was accepted vide assessment order under section 147/144B of the Act dated 24.03.2022. Since the as....

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....hat no tax was payable in respect of sale of property and, therefore, no original return of income was filed. However, when he discussed the matter with his consultant, he was informed about the tax liability and had accordingly paid self-assessment tax on 23.07.2019. However, he was unable to file the return of income as the due date for filing of return had already expired and the System did not allow him to file any return. The Ld. AR submitted that the assessee had duly filed the return in response to notice under section 148 of the Act which was accepted by the Department. He further submitted that the assessee had explained the reason for non-filing of return and that his explanation for under-reporting of income was bonafide. Accordi....

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.... assessee offers an explanation for non-filing of return and if the explanation of the assessee is found to be bona fide, then it will not be considered as under-reporting of income. In the present case, the assessee had explained that he had already paid self-assessment tax on 23.07.2019, which was much before the date of issue of notice under section 148 of the Act on 25.03.2021. The assessee was prevented from filing the return after payment of self-assessment tax, for the reason that the return filing window did not allow him to file the return. From the copy of return filed by the assessee in response to section 148 of the Act notice, it is found that the assessee had paid self-assessment tax of Rs. 10,41,140/- on 23.07.2019; the credi....