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June 2024

When notice is for under-reporting of income, order passed levying penalty for misreporting of income is not justified.

By Jagdish T Punjabi, Chartered Accountant
Devendra Jain & Aditya Bhatt, Advocates
Reading Time 4 mins

13 Mohd. Sarwar vs. ITO

TS-193-ITAT-2024(Mum)

A.Y.: 2018–19

Date of Order: 2nd April, 2024

Section 270A

When notice is for under-reporting of income, order passed levying penalty for misreporting of income is not justified.

FACTS

The assessee filed his return of income for the assessment year 2018–19, declaring therein a total income of ₹14,34,180. In the revised return of income filed on 26th July, 2018, the assessee returned total income of ₹6,46,520 and claimed a refund of ₹2,21,980. The TDS credit claimed in revised return of income was ₹2,65,037 as against ₹2,50,037 claimed in the original return. This led to a notice u/s 142(1) being issued along with questionnaire. During the course of assessment proceedings, the assessee furnished a revised computation of income, computing tot

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