Santhosh Abraham Vs ITO (ITAT Chennai)
The ITAT Chennai allowed the assessee’s appeal and deleted penalty of ₹2,57,631 levied u/s 270A for alleged under-reporting of income. The Tribunal noted that the assessee had not filed return due to Covid-19 illness but later filed return in response to notice u/s 148 declaring salary income which was fully accepted in assessment without any variation. Since almost the entire tax liability was already covered through TDS and there was no concealment or tax evasion, the assessee’s explanation was held to be bona fide and covered under section 270A(6)(a). Holding that income could not be treated as under-reported merely because return was filed after reopening, the Tribunal deleted the penalty and allowed the appeal.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
This appeal filed by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 23.10.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2020-21.
2. The solitary issue that is raised is whether the First Appellate Authority (FAA) is justified in confirming the penalty imposed u/s.270A of the Act amounting to Rs.2,57,631/-.
