No Misreporting, No Penalty: ITAT Deletes ₹11L Penalty u/s 270A(9) Where Return Accepted in Full

Sree Tharakarama Constructions Vs ACIT (ITAT Hyderabad) The Hyderabad ITAT deleted penalty of ₹11.03 lakh levied u/s 270A(9), holding that the case involved under-reporting and not misreporting of income. The Tribunal first condoned a 10-day delay considering the assessee’s serious health condition as a sufficient cause. On merits, the assessee had not filed a return originally, but filed it later in response to notice u/s 148, declaring income which was accepted in toto by the AO without any additions. Despite this, the AO levied penalty treating the case as misreporting of income. The IT...