Vivek Trivedi Vs ACIT (ITAT Mumbai)
Return Filed Only After Reopening, but Income Fully Disclosed: ₹3.95 Lakh Penalty Deleted
Summary: Vivek Trivedi filed his income-tax return for the first time in response to a reassessment notice. The Assessing Officer accepted the income declared in that return without making any addition, but imposed a penalty of ₹3,95,123 under section 270A because no return had been filed within the original due date. The Mumbai Tribunal deleted the penalty. It held that the provision for a first return filed under section 148 must be read together with the rules for computing under-reported income and the express exclusion for a bona fide explanation with full disclosure.
A Property Purchase Triggered the Reassessment
Trivedi was employed as a ship captain with MMS Maritime (India) Pvt. Ltd. He had not filed a return within the time prescribed under section 139(1). Information on the department’s Insight Portal showed, among other things, a property purchase for ₹1,43,70,000, salary receipts and interest income. The Assessing Officer issued a notice under section 148 on 28 February 2024.
In response, Trivedi filed a return on 27 May 2024, declaring income of ₹31,57,840. During reassessment, he produced the property purchase agreement, bank statements, a housing-loan certificate, details of mutual fund and fixed deposit redemptions, an EPF statement and other supporting records.
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