No Penalty When Quantum Deleted: 270A Cannot Survive Without Addition

Rahul Saunik Vs ITO (ITAT Mumbai) The assessee was subjected to penalty under Section 270A for alleged under-reporting of income, based on an addition of ₹62.09 lakh made in reassessment proceedings. However, in quantum appeal, the CIT(A) deleted the entire addition, holding that salary income was already disclosed and subjected to TDS, and property payment was not income. The ITAT held that penalty proceedings are purely consequential and cannot survive once the underlying addition is deleted. Since the assessed income after appellate relief matched the returned income, the basic condition ...