| Question And Answer | |
|---|---|
| Subject: | Section 270A |
| Category: | Income-Tax |
| Querist: | BS |
| Answered by: | Research Team |
| Tags: | misreporting of income, penalty, Section 115BBE, Section 270A |
| Date: | November 20, 2021 |
Can AO invoke provision of section 270A just because tax at higher rate is applied by him u/s 115BBE and no addition to income is made on income declared is offered at normal rate ?
In CIT v. Hiralal Doshi (2016) 383 ITR 19 (Bom.)(HC) held that a mere change of head of income from capital gains to business income does not attract penalty. In PCIT v. Yamunaji Corporation (2020) 424 ITR 369 (Guj.)(HC) held that if the amount disclosed in the return is accepted , penalty cannot be levied . In PCIT v. Rajkumar Gulab Badgujar (2019) 111 taxmann.com 256 (Bom)(HC) SLP of revenue is dismissed (SLP No.17514 of 2019 dt.08/07/2019)(2019) 416 ITR 134 (St.)(SC)/ (2019) 267 Taxman 488 (SC), when there is no addition to declared income penalty cannot be levied . The issue is debatable .