Rajendra Chandrakant Chinchnikar Vs ACIT (ITAT Pune)
Tribunal confirmed the Penalty for misreporting of income u/s 270A on the income declared During Survey
Summary: The Pune of the Income Tax Appellate Tribunal dismissed an appeal of the assessee upholding a penalty of ₹ 35.92 lakh under Section 270A on the professional receipts detected during a tax survey. The Tribunal held that the assessee’s revised return, filed only after the survey identified unaccounted cash receipts, did not constitute voluntary disclosure. The penalty was sustained as the income was suppressed and only admitted after confrontation, fulfilling the criteria of “under-reporting in consequence of misreporting” as interpreted under Section 270A(9)(e).
Background and Facts
The assessee, an individual engaged in running the Diagnostic Centre in Pune, filed his original income tax return for AY 2019-20, declaring ₹ 41.42 lakh. Subsequently there was a survey u/s 133A in the business premises of the assessee. During a survey, authorities impounded registers reflecting cash receipts from medical services that had not been recorded in the regular books. During the survey, assessee admitted these receipts as unaccounted professional receipts for ₹ 49.64 lakh for FY 2018-19 and subsequently revised his return to declare ₹ 90.68 lakh in total income.
