Sanjay Sharma Vs Assessment Unit (ITAT Mumbai)
Summary: The appeal concerned penalty under Section 270A of the Income-tax Act, 1961 for Assessment Year 2018-19. The assessee, Sanjay Sharma, had not filed his regular return of income. Information available to the Department through its risk management system indicated salary income of Rs. 65,69,395/- from M/s. Wanbury Ltd. and Rs. 8,04,138/- from the Employee Provident Fund Organization. Reassessment proceedings were thereafter initiated under Section 147, after an order under Section 148A(d), followed by notice under Section 148.
During the reassessment proceedings, the assessee admitted salary income of Rs. 34,11,506/- from M/s. Wanbury Limited and provident fund withdrawal of Rs. 8,04,138/-. He filed a return in response to the Section 148 notice, paid additional tax together with interest under Sections 234A, 234B and 234C and late filing fee, and the Assessing Officer completed the assessment under Section 147 read with Section 144 accepting the income declared in that return. The Assessing Officer nevertheless initiated penalty proceedings under Section 270A. The CIT(A) upheld penalty of Rs. 4,58,888/-, holding that the return had been filed for the first time in response to Section 148, the assessed income exceeded the basic exemption limit, and the disclosure followed initiation of reassessment proceedings rather than being voluntary.
