Held that the Assessing Officer had initiated penalty proceedings on interest income for \u201cunder-reporting of income\u201d, but at the time of levying penalty he levied it for \u201cmisreporting of income\u201d. Thus, no penalty for misreporting income was justified on this addition. The penalty under section\u00a0270A\u00a0on such addition is\u00a0 to be deleted. As regards\u00a0 the addition of leave encashment\u00a0 the assessee had explained that initially he was employed by the Gujarat State Electricity Board, an organ of the State Government, which was split into seven State-owned companies and that he was under the bona fide belief that he was a Government employee and that he had disclosed all the particulars of his income. Thus, considering such facts there was merits in the submissions of the assessee that he was under a bona fide belief that he was a State Government employee. It is settled position under law that the levy of penalty is not automatic merely on an addition being made. If the assessee had explained his bona fide belief about exemption in respect of any component of income, no penalty is\u00a0 leviable on such component of income. (AY. 2018-19)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 270A : Penalty for under-reporting and misreporting of income-Leave encashment-Bona fide belief about exemption-Mere addition-Levy of penalty is deleted. [S.10(10AA), 80TTB] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-44698","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-bCW","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44698","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=44698"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44698\/revisions"}],"predecessor-version":[{"id":44699,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/44698\/revisions\/44699"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=44698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=44698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=44698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}