Belated Return Accepted Without Additions: ITAT Sets Aside S.270A Penalty for Under-Reporting [Read Order]
The tribunal noted that In this case, the income declared by the assessee was fully accepted, and there was no discrepancy or addition made.
![Belated Return Accepted Without Additions: ITAT Sets Aside S.270A Penalty for Under-Reporting [Read Order]](https://images.taxscan.in/h-upload/2025/06/12/2043032-itat-delhi-income-tax-penalty-s270a-taxscan.webp "Belated Return Accepted Without Additions: ITAT Sets Aside S.270A Penalty for Under-Reporting [Read Order]")
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) set aside the penalty imposed under Section 270A of Income Tax Act,1961, holding that there was no case of under-reporting when the belated return filed by the assessee was fully accepted without any additions. Sudarsan De,appellant-assessee,filed his income tax return on 11.04.2022, declaring a total income...
The Delhi Bench of Income Tax Appellate Tribunal (ITAT) set aside the penalty imposed under Section 270A of Income Tax Act,1961, holding that there was no case of under-reporting when the belated return filed by the assessee was fully accepted without any additions.
Sudarsan De,appellant-assessee,filed his income tax return on 11.04.2022, declaring a total income of ₹1,02,88,060/-, which included income from business and other sources, a house property loss claim of ₹2,00,000, and Chapter VIA deduction of ₹1,85,000.
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The assessment was completed at the returned income. However, the Assessing Officer(AO) held that there was under-reporting of income and levied a penalty of ₹17,15,404 under Section 270A on 02.05.2023.
The assessee’s appeal before the Commissioner of Income Tax(Appeals)[CIT(A)] was dismissed on 10.09.2024. He then filed the present appeal before the ITAT.
The assessee counsel argued that the return was filed voluntarily and accepted without any additions by the AO, so there was no case of under-reporting. He submitted that the CIT(A) was wrong in dismissing the appeal and requested that it be allowed.
The Departmental Representative responded that the assessee was a non-filer and filed the return only after the case was reopened under Section 147. He also pointed out that the manual return was invalid without condonation under Section 119(2), and the penalty under Section 270A was rightly imposed.
The AO had recorded satisfaction for under-reporting of income and imposed a penalty under Section 270A. However, the tribunal observed that under-reporting refers to disclosing less income than what is actually earned. In this case, the income declared by the assessee was fully accepted, and there was no discrepancy or addition made.
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Therefore, the appellate tribunal held that the provisions of under-reporting under Section 270A did not apply and could not be invoked. Accordingly, it set aside the penalty order and the CIT(A)’s order.
In short,the appeal was allowed.
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