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Section 270A Penalty Invalid for Loss Reclassification from Business to Speculative
Case Law Details
- Case Name
- INU Exports Private Limited Vs ITO (ITAT Mumbai)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2017-2018
- Courts
- All ITAT, ITAT Mumbai
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INU Exports Private Limited Vs ITO (ITAT Mumbai)
The Income Tax Appellate Tribunal, Mumbai Bench deleted a ₹15.19 crore penalty levied u/s 270A. The issue was straightforward. The AO treated a business loss as speculative loss and proceeded to levy penalty for alleged under-reporting of income.
The Tribunal held that:
The loss was fully disclosed in the return
There was no concealment or furnishing of inaccurate particulars
The AO merely changed the head under which the loss was classified
A change in classification, by itself, does not attract penalty.
Reiterating settled law, the Bench...
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