TaxTMI 
TaxTMI 
2026 (9) TMI 578
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.... Findings & Analysis : 2. We have heard both the parties and perused the records. In this case, Assessee is a salaried employee. Assessee had not filed return of income for A.Y.2019-20 under section 139(1) of the Act. The Assessing Officer analysed the 26AS of the Assessee and noted that Assessee had income of Rs.58,39,560/- during the year. Therefore, Assessing Officer issued notice u/s.148 on 30.03.2023. Accordingly, Assessee filed return of income on 11.04.2023 for A.Y.2019-20. After analysing all the data, Assessing Officer accepted the return of income filed u/s.148 declaring total income at Rs. 32,23,520/- and passed an assessment order without making any addition. However, Assessing Officer initiated penalty 270A for under reporti....
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....orting the income u/s 270A of the Act. The quantum of penalty leviable in the present case is computed as under- Net Tax Payable on under reported income as per the Assessment Order Rs. 8,11,518/- Penalty to be levied at the rate of 50% Rs.4,05,759/- 10. I hereby levy penalty of Rs. 4,05,759/- u/s 270A of the Act (i.e. Fifty percent of the tax payable on the under reported income). 11. This order has been passed with the prior approval of the Addl. Commissioner of Income tax as per section 274(2) of the Act. 12. Issue Demand Notice & Challan accordingly." 3. Aggrieved by the penalty order, Assessee filed appeal before ld.CIT(A). Ld.CIT(A) dismissed the appeal of the assessee. Relevant paragraphs ....
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.... without making any addition. Hence, there is no under reporting. Ld.AR further submitted that on identical facts, Assessing Officer had dropped penalty under section 270A for A.Y.2018-19 in assessee's own case. Ld.AR filed copy of the said order. Ld.AR therefore submitted that penalty may be dropped. 6. Ld.AR for the Assessee relied on the following case laws : ⮚ Hon'ble Delhi High Court in the decision of Nirman Overseas (P.) Ltd., Vs. NFAC, [2022] 145 taxmann.com 664 (Delhi) dated 08.04.2022. ⮚ ITAT Delhi Bench in the case of Sudarshan de Vs. DCIT in ITA No.5177/DEL/2025 for A.Y.2018-19 vide order dated 30.05.2025. ⮚ ITAT Pune Bench in Smita Virendra Lodha Vs. ITO in ITA No.1980/PUN/....
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....ct of the assessee and the sequence of dates and events, it is undisputedly clear that, the explanation of the assessee with regard to non-filing of return of income appears to be bona fide and genuine without any intention of under-reporting of income, arising on account of transfer of property in pursuant to the Joint Development Agreement. Since the assessee has already paid a substantial amount of tax and also filed return of income disclosing the complete income in respect of transfer of property, and the same has been accepted by the A.O., in our considered view, the case of the assessee falls under sub-section (6) of Section 270A of the Act, where it has been clearly stated that, the under-reported income shall not include the amount....