Santosh Kumar Chamoli Vs Assessing Officer (ITAT Dehradun)
ITAT Dehradun remands 200% penalty under section 270A where bona fide TDS-based explanation was not examined — statutory exclusion under section 270A(6) must be considered before treating income as under-reported.
Summary: The ITAT Dehradun considered whether a 200% penalty under section 270A could be sustained without examining the assessee’s bona fide explanation for not filing the return where the entire salary income had suffered TDS. The assessee had changed employment during the relevant year and believed that, since tax had already been deducted at source, no return was required. After receiving notice from the AO dated 31.03.2023, the assessee engaged a tax professional, complied with the proceedings and discharged the tax dues. The AO imposed penalty of Rs. 13,31,252 at 200%, while the CIT(A) confirmed it. Before the ITAT, the assessee relied on section 270A(6), contending that the statutory exclusion for an amount supported by a bona fide explanation and disclosure of material facts had not been examined. The Tribunal also found that the AO had not assigned a specific reason for imposing penalty beyond the minimum rate of 100%. It therefore set aside the NFAC/CIT(A) order and directed fresh consideration of the assessee’s case under section 270A(6), followed by a reasoned and speaking order. The appeal was partly allowed for statistical purposes.
