ITAT Quashes Section 270A Penalty as POEM-Based Tax Position Was Debatable

Advertisement Ajay Maheshwari Vs ACIT (ITAT Nagpur) The Income Tax Appellate Tribunal (ITAT), Nagpur, allowed the assessee’s appeals for Assessment Years 2017-18 and 2018-19 by quashing penalties imposed under Section 270A of the Income Tax Act for alleged misreporting of income. The Tribunal held that the assessee’s exclusion of income received from a Hong Kong company was based on a bona fide and debatable legal interpretation of the Place of Effective Management (POEM) provisions and did not amount to misreporting or suppression of facts. For Assessment Year 2017-18, the assessee ori...