2026 (8) TMI 179

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....raised the following grounds of appeal: 1. In law and in the facts and circumstances in the case of the Appellant, the order passed under section 250 of the Act is erroneous and invalid and deserves to be quashed as the same is in violation of principles of natural justice. 2. In law and in the facts and circumstances in the case of the Appellant, the CIT (A) has erred in not considering that the reassessment order passed by AO was "bad in law" since the notice under section 148 was issued by the Jurisdictional Assessing Officer (JAO) instead of the Faceless Assessment Centre, violating Section 151A and CBDT Notification No. 18/2022, thus consequential penalty order u/s 270A was also bad in law. 3. in law and....

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....t challenge the reassessment order passed under section 147 of the Act. During the penalty proceedings, the appellant reiterated that the donation was genuine and contended that no penalty was leviable under section 270A of the Act. The Assessing Officer, however, did not accept the appellant's explanation and, vide penalty order dated 27.06.2025, levied penalty under section 270A at 200% of the tax payable, amounting to Rs.97,362/-. 4. Aggrieved by the penalty order, the appellant preferred an appeal before the learned Commissioner of Income-tax (Appeals). However, the learned CIT(A), vide order passed under section 250 of the Incometax Act dated 06.01.2026, dismissed the appeal. 5. At the outset, both the parties fairly submitte....

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....ing that there was misreporting of income. The mere fact that the assessee chose not to challenge the quantum addition due to the relatively small amount involved and in order to avoid prolonged litigation does not amount to an admission of concealment or furnishing of false particulars. It is well settled that penalty proceedings are distinct and independent from assessment proceedings, and the findings in the assessment order are not conclusive for the purpose of levy of penalty. Section 270A draws a clear distinction between "under-reporting of income" and "misreporting of income." Misreporting is attracted only in specific circumstances enumerated in sub-section (9), such as misrepresentation or suppression of facts, failure to record i....