Section 263 Revision for Non-Initiation of Penalty Proceedings Erroneous: ITAT Mumbai

G M Builders Vs PCIT (ITAT Mumbai) Assessee is a partnership firm who filed its return of income after 148 notice was issued. PCIT issued a notice after verification of the assessment records that the assessment was framed on the income declared in the return filed u/s 148. This implies that despite assessee’s income being greater than the maximum amount not chargeable to tax, he did not file the return of income and this return was furnished for the first time u/s 148. It was held that assessee has to be considered as a person who has under-reported its income u/s 270A(2)(b). However in the...