Section 270A Penalty Quashed as Income Was Fully Disclosed but Taxed Under Wrong Head

Penninti Vivekananda Rao Vs ADIT (ITAT Hyderabad) This appeal concerned the levy of penalty under section 270A of the Income Tax Act, 1961 for Assessment Year 2020–21. The assessee, a non-resident individual, filed his return declaring total income of ₹5.20 crore, including capital gains and income from other sources. A significant portion of the capital gains related to the surrender of three Bajaj Equity Plus Fund policies. During scrutiny, the Assessing Officer held that the gains from surrender of these funds were taxable under the head “Income from Other Sources” instead of “Cap...