Saltwater Studio LLP v. NFAC [ITA No. 13/Mum/2023(Mum)] dated 22.05.2023 (ITAT Mumbai)

Court: Hon'ble Mumbai ITAT
Head Notes:

Penalty u/s 270A of the Act for underreporting of income as a consequence of misreporting levied at 200% of the tax payable deleted by Hon’ble Mumbai Income Tax Appellate Tribunal. While deciding the case, the Hon’ble Tribunal has taken note of the arguments that the penalty u/s 270A of the Act is discretionary and not automatic/mandatory in nature and that there has to be an element of mens rea (malafide intention) for levy of penalty.
Thereafter, the Hon’ble Tribunal has deleted the penalty levied u/s 270A on the ground that penalty levied for misreporting of income without specifying in the order which of the relevant clause of sub section 9 of s. 270A of the Act is attracted, suffers from the vice of non application of mind and violation of principles of natural justice.

Section(s): 270A
Counsel(s): Dhaval Shah, Advocate
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Uploaded By Gautam Rank, CA
Date of upload: June 6, 2023

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