Case Law Details
Mahendra N. Patel Vs DCIT (ITAT Ahmedabad)
In the case of Mahendra N. Patel Vs DCIT, heard by ITAT Ahmedabad, the penalty imposed under section 270A of the Income Tax Act was nullified due to the absence of misreporting or underreporting by the assessee.
The case stemmed from the assessee filing their return of income for the assessment year 2020-21, declaring a total income of Rs. 5,49,75,980/-. Subsequently, the Assessing Officer conducted scrutiny assessment and determined a total assessed income of Rs. 5,63,08,997/-, with an addition of Rs. 13,33,313/-. This addition pertained to interest expenses, which the Assessing Officer deemed lacked proper justification.
Penalty proceedings were initiated against the assessee for misreporting and underreporting of income, leading to the imposition of a penalty of Rs. 11,39,860/- under section 270A of the Act.
Upon appeal, the CIT(A) upheld the penalty order. However, the assessee contested the decision, asserting that all expenditures were duly noted in the books of accounts and submitted during the assessment proceedings. The assessee provided evidence supporting the claimed deductions, including interest payments and certain expenses paid to M/s Shree Fintax Services. It was argued that there was no misreporting or underreporting on the part of the assessee.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
