| Question And Answer | |
|---|---|
| Subject: | Query on Sec 270A-Penalty for under reporting and misreporting of Income |
| Category: | Income-Tax |
| Querist: | CA. Ankit Tantia |
| Answered by: | Reply of the Expert is awaited; |
| Tags: | penalty |
| Date: | February 22, 2024 |
An assessee had not filed his return of income for the Assessment Year 2018-19 voluntarily under section 139 in spite of having taxable income. The Return of Income was filed only in response to notice under section 148. But the assessee inadvertently escaped Saving Bank Interest and availed deduction under Section 80TTA.
The Assessment Unit made assessment under section 147 read with section 144B and added Saving Bank Interest and also allowed deduction under section 80TTA. The Tax demanded under section 156 was duly paid within 30 days but the time limit for application u/s 270AA (Immunity from Imposition of Penalty) has already expired.
The Assessment Unit levied Penalty under Section 270A (7) @ 50 % of the Tax Payable on the Total Income assessed considering the same as under reported income.
Almost 90 % of the Tax Payable was deducted by the Employer in the form of TDS on salary Income but even then Penalty was levied on the entire Income considering the same as under reported income.
Is there any case laws favoring assessee?
On what grounds the penalty be waived or reduced?
Reply of the Expert is awaited. Please check back later