| Question And Answer | |
|---|---|
| Subject: | Query on Parallel proceedings under Sec 147 and 270A |
| Category: | Income-Tax |
| Querist: | CA Ankit Tantia |
| Answered by: | Law Intern |
| Tags: | Section 270A |
| Date: | November 23, 2025 |
There are two parallel proceedings pending against the assessee for Assessment Year 2018–19:
- Reassessment proceedings under Section 147, and
- Penalty proceedings for under-reported income under Section 270A.
The assessee has already filed an appeal before the Hon’ble CIT(A) against the reassessment order. However, due to serious health issues, the assessee could not file an appeal against the penalty order issued under Section 270A.
I seek guidance from the members on the following points:
- If the alleged under-reported income is deleted by the Hon’ble CIT(A) in the quantum appeal, will the penalty imposed under Section 270A automatically stand deleted to the extent of the income deleted in appeal?
- The penalty order was passed after the quantum appeal was filed, but the assessee could not request for keeping the penalty proceedings in abeyance. Will this have any adverse implication?
- The appeal against the reassessment order is currently at the hearing stage under Section 250. Should the written submission in the quantum appeal also include a reference to the penalty imposed under Section 270A?
(i) Yes. If the quantum addition is deleted by CIT(A), the penalty u/s 270A automatically stand deleted. S. 270A penalty is for “under-reporting” or “misreporting” of income & is inextricably linked to the quantum addition. If it is held there is no under-reported income, there cannot be any penalty on that income. See CIT vs. Suresh N. Gupta (2008) 297 ITR 322 (SC).
(ii) No. There is no need to request the penalty proceedings to be kept in abeyance.
(iii) Advisable to do from a strategic pov because the CIT(A) may make a reference to it whilst allowing the appeal.