2026 (3) TMI 801

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....24 passed u/s 143(3) r.w.s. 144B of the Act pertaining to Assessment Year 2022-23. 2. Brief facts of the case are that assessee is an individual and filed his return of income on 28.07.2022, declaring total income of INR 4,89,260/-. The return was updated on 11.09.2023 u/s 139(8A) of the Act, declaring total income of INR 73,92,200/- and paid the taxes alongwith the interest thereon. The case of the assessee was selected for scrutiny on the ground that no capital gain was reported in ITR though the assessee has sold the property thereafter, the assessment was completed u/s 143(3)/144B of the Act dated 14.03.2024 wherein income declared in the updated return filed u/s 139(8A) of the Act was accepted however, penalty proceedings u/s 270A(1....

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.... Welfare Society in ITA No.609/Del/2023 wherein vide order dated 26.10.2023 it is held that if the income is declared in the revised return and additional tax alongwith interest is paid before the issue of show cause notice, penalty is not leviable u/s 270A of the Act. Further, with respect to the defect in the penalty notice, Ld.AR placed reliance on the judgement of Co-ordinate Bench in the case of Brij Gopal Construction Co. Pvt. Ltd. vs ACIT [2025] 213 TAXLOK.COM (IT) 565 dated 28.11.2025 and DCIT vs Ajay Vision Education Pvt. Ltd. [2025] 213 TAXLOK.COM (IT) 400 and G. R. Infra Projects Ltd. Vs ACIT (Rajasthan High Court). 4. On the other hand, Ld. CIT DR for the Revenue vehemently supported the orders of the lower authorities and su....

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.... opinion that such updated return could be filed, he could have made separate addition of the income declared by the assessee in the return of income filed u/s 139(1) of the Act towards the capital gains. This clearly shows that AO has accepted the updated return filed by the assessee as valid return. It is further observed that in the notice issued for initiation of penalty proceedings u/s 270A of the Act dated 14.03.2024, AO has not specified the charge as provided under clause (a) to (f) of sub-section (9) of section 270A of the Act for under reporting of income as a consequence of mis-reporting thereof. 6. The Co-ordinate Bench of ITAT, Mumbai Tribunal in the case of Kshitij Interiors (P.) Ltd. Vs DCIT, Mumbai dated 21.01.2026 has he....

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....n of assessment, and the income so disclosed was accepted by the AO without any modification-There is no finding that the assessee made any false entry in the books of account, or that the claim of expenditure is not substantiated by evidence, or any other ingredient specified in cls. (a) to (f) of s. 270A(9)-Assumption that, had the survey not taken place, the assessee would not have declared the income cannot substitute the statutory conditions prescribed under s. 270A, particularly when the income has ultimately been offered to tax in the return and accepted in the assessment-Once the amount offered to tax during the survey proceedings is duly incorporated in the return of income filed within the prescribed time and the assessment is com....