2026 (8) TMI 194

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.... the Penalty Order, dated 07/07/2025, passed under Section 270A of the Income Tax Act, 1961 [hereinafter referred to as 'the Act'] for the Assessment year 2019- 2020. 2. The Assessee has raised 7 grounds all directed against the order of the Learned CIT(A) conforming the levy of penalty of INR.41.602/- under Section 270A of the Act. 3. The brief facts of the case are that the Assessee had filed return of income for Assessment Year 2019-2020 on 12/08/2019 declaring total income of INR.7,13,850/-. The return was processed vide intimation under Section 143(1) of the Act. Subsequently, the Assessing Officer had information that a search action under Section 132 of the Act was conducted on Registered Unrecognized Political Parties (RUPP) i....

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....the issue raised by the Assessee in the present appeal stands covered by the decision of the Ahmedabad Bench of the Tribunal in the case of Hiro Mulchand Tanwani Vs. ITO [ITA No.110/AHD/2026, dated 15/05/2026] the relevant extract of which reads as under: "3. The assessee challenged the levy of penalty under Section 270A of the Income-tax Act, 1961, contending that the Assessing Officer was not justified in treating the disallowance of deduction claimed under Section 80GGC as a case of "misreporting of income." The facts reveal that the assessee had filed the return of income for Assessment Year 2019-20 declaring total income of Rs. 13,25,710 after claiming deduction of Rs. 1,50,000 under Section 80GGC in respect of donation made t....

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....g false entries, or failure to report receipts. In the present case, the assessee had duly disclosed the donation in the return of income and claimed deduction under Section 80GGC based on the belief that the payment qualified for deduction. The disallowance arose because the Assessing Officer was not satisfied about the genuineness or eligibility of the donation. However, there is no material on record to establish that the assessee had furnished any false evidence, suppressed any facts, or made any deliberate misrepresentation. A claim of deduction made in the return, even if ultimately found to be inadmissible, does not automatically lead to the conclusion that the assessee has misreported income. Unless the Revenue demonstrates with cog....