Held that where the assessee has offered interest income as per Form 26AS and difference in interest income came to light post filing of ITR on account of delayed reporting by payer bank, same could not tantamount to under-reporting of income, it would not attract . Tribunal also held that if the enhanced claim of exemption under section 10(10) of the assessee on the basis of mistaken bona fide belief and the asseessee had disclosed all material facts . The Tribunal also held that imposition of penalty is discretionary and not mandatory . Penalty is deleted . (AY. 2017 -18)
Ravindra Madukar Kharche v .ACIT ( 2024) 161 taxmann.com 712 ( Nagpur)( Trib)
S. 270A:Penalty for under -reporting and misreporting of income – Incorrect reporting of interest income as appearing in 26AS – Enhanced claim under section 10(10) – Imposition of penalty is discretionary and not mandatory – Benefit of doubt must be given to the assessee- Penalty is deleted . [ S.10(10), 270A(6), Form No 26AS ]