Mere Acceptance of Political Donation Addition Doesn’t Justify Penalty

Hiro Mulchand Tanwani Vs ITO (ITAT Ahmedabad) No 270A Penalty Merely Because Deduction Claim Failed: ITAT Deletes ‘Misreporting’ Penalty on 80GGC Donation The Ahmedabad ITAT deleted penalty levied under Section 270A for alleged “misreporting of income” arising from disallowance of deduction claimed under Section 80GGC towards donation to a political party. The Tribunal held that mere disallowance of a deduction claim or non-filing of appeal against the quantum addition does not automatically establish concealment or misreporting. The assessee had transparently disclosed the donation in...