Kavita Mamidi Vs ACIT (ITAT Hyderabad)
The Hyderabad ITAT allowed the assessee’s appeal and directed deletion of the penalty levied under section 270A of the Income-tax Act, 1961 for A.Y. 2018-19. The assessee had not filed her original return of income, following which assessment was reopened under section 148. In response, she declared total income of Rs.37,58,300/-. The assessment completed under section 147 r.w.s. 144B determined total income at Rs.38,03,034/-, including an addition of Rs.44,734/- towards savings bank interest. Penalty of Rs.19,64,022/- was subsequently levied under section 270A on the ground of under-reporting in consequence of misreporting. The assessee explained that she was employed outside India and was under a bona fide belief that her employer had filed her return, as had allegedly been done in earlier years. The Tribunal noted that the entire assessed income, except Rs.44,734/-, was subject to TDS, including salary income and interest income under section 194A. Considering the explanation, disclosure of the entire income in the return filed pursuant to section 148 notice and the material facts furnished by the assessee, the Tribunal held that the case fell within section 270A(6). It concluded that the Assessing Officer ought not to have levied the penalty and set aside the CIT(A)’s order, directing the Assessing Officer to delete the penalty.
