| Question And Answer | |
|---|---|
| Subject: | income tax notice for penalty |
| Category: | Income-Tax |
| Querist: | TAPAS RANJAN PANI |
| Answered by: | Law Intern |
| Tags: | Concealment penalty, Section 270A |
| Date: | March 27, 2025 |
WHETHER PENALTY PROCEEDINGS INITIATED UNDER SECTION.274 READ WITH SECTION.270A OF THE INCOME TAX ACT,1961 IN CASE THE INCOME TAX RETURN IS FILED UNDER SECTION.148 IS LEGALLY TENABLE
Under the erstwhile Section 271(1)(c), it was held in CIT v. Suresh Chandra Mittal [2001] 251 ITR 9 (SC) that penalty for concealment cannot be levied if the taxpayer has disclosed income in a return filed under Section 148.
The same principle applies u/s 270A if there is no “under-reporting” or “misreporting” in the return.
However, if the AO makes additions to the income declared in the Section 148 return, penalty proceedings could be justified, provided the AO proves under-reporting or misreporting.
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