| Question And Answer | |
|---|---|
| Subject: | Query Under Income Tax Act Penalty Proceeding |
| Category: | Income-Tax |
| Querist: | Suresh Somauya |
| Answered by: | Law Intern |
| Tags: | Concealment penalty, Section 270A |
| Date: | January 26, 2026 |
The addition made in the assessment order arises solely due to a difference of opinion regarding the applicability of Section 44AD vis-à-vis Section 44ADA
The Assessing Officer proposing notice for initiation of penalty proceedings under Section 270A
Any case laws referring Sec 270A sec 44ADA Sec 44AD
There are a number of judgements which hold that a genuine & bona fide difference in interpretation does not qualify as “misreporting” u/s 270A(9). It would also not be treated as “under-reporting” u/s 270A(2). It will have to be shown that the claim is plausible and supported by reasonable cause.
The principles of law are nicely summed up in Gujarat Energy Development Agency vs Deputy Commissioner of Income Tax (ITA Nos.1179 & 1180/Ahd/2025) dated 16 October 2025.