No section 270A Penalty for Genuine Head of Income Error in computation of Income

D.C. Polyester Limited Vs DCIT (ITAT Mumbai) Introduction: The case of D.C. Polyester Limited vs. DCIT (ITAT Mumbai) revolves around the imposition of a penalty under section 270A of the Income Tax Act. The crux of the matter lies in the alleged under-reporting of income due to a change in the head of income while computing the total income. Background: D.C. Polyester Limited, a part of the D’ Decor Group, filed its return of income, declaring a loss, which was later subjected to scrutiny under section 153A post a group-wide search. During the scrutiny, the Assessing Officer observed a c...