Penalty U/s 270A Deleted – Bona Fide Explanation Tax Covered by TDS

Santhosh Abraham Vs ITO (ITAT Chennai)

The ITAT Chennai allowed the assessee’s appeal and deleted penalty of ₹2,57,631 levied u/s 270A for alleged under-reporting of income. The Tribunal noted that the assessee had not filed return due to Covid-19 illness but later filed return in response to notice u/s 148 declaring salary income which was fully accepted in assessment without any variation. Since almost the entire tax liability was already covered through TDS and there was no concealment or tax evasion, the assessee’s explanation was held to be bona fide and covered under se

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