Hitesha Sachin Takur Vs ITO (ITAT Mumbai)
Summary: The Mumbai Bench of the Income Tax Appellate Tribunal allowed the assessee’s appeal against the order dated 02.01.2026 of the CIT(A), NFAC, Delhi, which had sustained penalty of Rs. 3,75,652/- under Section 271(1)(c) of the Income-tax Act, 1961 for AY 2015-16. The assessee had not originally filed a return under Section 139(1), but filed a return in response to notice under Section 148, disclosing total income of Rs. 18,05,950/-. In reassessment under Section 143(3) read with Section 147, the returned income was accepted without any addition, disallowance or variation. The Tribunal noted that the case was one of deemed concealment in terms of Explanation (3) to Section 271(1)(c). However, for determining the tax sought to be evaded, Explanation (3) had to be read with clause (c) of Explanation (4). The Tribunal found that TDS of Rs. 4,30,896/- had already been deducted and deposited before issuance of notice under Section 148, whereas the final tax liability was Rs. 3,75,652/-. Since the tax already deducted exceeded the final tax liability, the Tribunal held that there was no tax sought to be evaded. It therefore found no basis or justification for the penalty of Rs. 3,75,652/- and directed its deletion. The appeal was accordingly allowed.
