TaxTMI 
TaxTMI 
2026 (7) TMI 502
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.... called 'the Act'). The order of NFAC arises out of the order of AO imposing penalty u/s. 270A of the Act. The relevant Assessment Year is 2017-18. 2. The solitary issue that is argued is whether the First Appellate Authority (FAA) is justified in confirming the penalty of Rs. 16,62,193/- imposed u/s. 270A of the Act. 3. Brief facts of the case are as follows: The assessee is an individual. For the assessment year 2017-18, assessee had not filed his return of income u/s. 139 of the Act. The Department had information that assessee has income above the taxable limit. Hence, notice u/s. 148 of the Act was issued on 31.03.2021 requiring the assessee to furnish his return of income within 30 days. In response to the notice u/s. 148 of the....
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.... section 270A(7) of the Act. 5. Aggrieved by the penalty imposed u/s. 270A of the Act, assessee filed appeal before the FAA. Before the FAA, it was submitted that assessee had earlier worked in USA and was earning salary income from there. It was stated that since the salary income, income from house property and income from other sources were reflected in Form 26AS and due taxes has been deducted under the prescribed rates, assessee was under a bonafide belief that no return of income needs to be filed. With regard to addition of Rs. 10,00,000/- u/s. 69A of the Act, it was stated that deposits were renewal from US foreign income which could not be produced due to paucity of time. It was further submitted that in response to notice issue....
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....had been levied mechanically merely because the assessee had not filed the return of income within the prescribed time. The Ld. AR argued that mere non-filing of a return under sections 139(1) or 148 does not automatically amount to "under-reporting of income" u/s. 270A(2)(b), unless there is material to establish suppression or misrepresentation of income. In the present case, the income subsequently declared by the assessee was accepted by the AO while completing the assessment u/s. 147 r.w.s.144 r.w.s. 144B of the Act, and therefore, there was no under-reporting warranting levy of penalty. It was further submitted that the authorities had failed to consider the explanation offered by the assessee, the surrounding circumstances, and the s....
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.... for the year under consideration on account of a bona fide belief that tax had already been deducted at source on all the incomes assessable in his hands and the same stood duly reflected in Form 26AS. The record further reveals that during the reassessment proceedings, the assessee furnished a computation of total income, voluntarily admitted the income ultimately assessed by the Assessing Officer and also discharged the corresponding tax liability before the completion of the assessment proceedings. Except for the disallowance of deduction claimed under Chapter VI-A for want of supporting evidence and the addition of Rs. 10,00,000/- made under section 69A read with section 115BBE, there was no variation between the income offered by the ....