2026 (8) TMI 281

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....t the Penalty Order, dated 23/06/2025, passed under Section 270A of the Income Tax Act, 1961 [hereinafter referred to as 'the Act'] for the Assessment year 2019-2020. 2. The grounds raised by the Assessee read as under: "1. In law and in the facts and circumstances of the case of the appellant, the learned CIT(A) has erred into confirming the penalty order u/s 270A of the Act passed by the assessing officer. The appellate order being bad in law deserves to be quashed. 2. In law and in the facts and circumstances of the case of the appellant, the learned CIT(A) has erred in confirming the penalty levied u/s 270A of the Act amounting to Rs. 56,232/- even when no such penalty is leviable." 3. The brief facts of the case....

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....icer initiated penalty proceedings under Section 270A of the Act. The Assessing Officer was not satisfied with the Assessee's reply. The Assessing Officer vide Order, dated 23/06/2025, levied the penalty of INR.56,232/- under Section 270A of the Act. 4. Aggrieved by the penalty order, the Assessee preferred an appeal before the Learned CIT(A). However, the Learned CIT(A), vide Order, dated 11/11/2025, passed under Section 250 of the Act dismissed the said appeal. 5. Being aggrieved, the Assessee has preferred the present appeal before the Tribunal. 6. When the appeal was taken up for hearing, at the outset, both the sides fairly submitted that the issue raised by the Assessee in the present appeal stands covered by the decision....

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....ved 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 investments, claiming of expenditure not substantiated by evidence, recording false entries, or failure to report receipts. In the present case, the assessee ha....