Sudarsan De Vs DCIT (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) Delhi Bench, in a recent pronouncement on May 30, 2025, has set aside a penalty imposed under Section 270A of the Income Tax Act, 1961, against assessee Sudarsan De for Assessment Year 2018-19. The Tribunal ruled that no penalty for ‘under-reporting of income’ is warranted when the income declared in a belated return is fully accepted by the tax department without any additions.
The case originated from the assessee’s failure to file the Income Tax Return (ITR) by the due date. Subsequently, on April 11, 2022, a belated return was filed, declaring a total income of Rs. 1,02,88,060/-. This declared income comprised business and professional income, income from other sources, a claimed house property loss, and Chapter VIA deductions.
During the assessment process, the Assessing Officer (AO) accepted the income as declared in the belated return. However, the AO recorded satisfaction for ‘under-reporting the income’ and initiated penalty proceedings under Section 270A of the Act. Consequently, a penalty of Rs. 17,15,404/- was imposed on May 2, 2023.
Aggrieved by this penalty, Sudarsan De filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)]. The CIT(A), in an order dated April 10, 2024, upheld the penalty, leading the assessee to further appeal to the ITAT Delhi.
