2025 (7) TMI 252

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..../s. 270A of the Income Tax Act,1961(hereinafter referred to as 'the Act'). 2. The assessee in appeal before the Tribunal has raised multiple grounds assailing levy and confirming of penalty u/s. 270A of the Act. The assessee has also raised an additional ground of appeal vide application dated 20.06.2025 challenging validity of penalty notice dated 13.05.2021 issued u/s. 274 r.w.s. 270A of the Act. The additional ground raised by the assessee reads as under:- "1. That on the facts and in the circumstances of the case and in law, that the Ld. A.O issued a notice u/s 274 read with section 270A in a routine manner and failed to make a specific ground under which under-reported income which is in consequence of misreporting thereof ....

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....0A of the Act shows that ostensibly the FAO initiated penalty u/s. 270A(9) of the Act. However, while issuing notice u/s. 274 r.w.s. 270A of the Act dated 13.05.2021, the AO has mentioned both limbs of section 270A of the Act i.e. "under reporting" and "mis-reporting of income". Both these expressions carry different connotations and signifies different charges for levy of penalty. 'Under reporting' of income refers to reporting of less income then the actual income. Whereas, "mis-reporting of income" involves providing of incorrect information about the nature, source or amount of income. These expressions cannot be used interchangeably and are not synonyms for each other. Therefore, the Legislature has classified both these charges under ....