Under-Reporting Penalty- AO Didn’t Decide Form 68 in Time: ITAT Deletes 270A Penalty

Mrinalini Jayant Puranik Vs ITO (ITAT Pune) Under-Reporting Penalty- AO Didn’t Decide Form 68 in Time: ITAT Deletes 270A Penalty Pine Tribunal examined penalty u/s 270A upheld by CIT(A)/NFAC. Assessee had not filed return originally, though TDS statements reflected income of Rs.2.63 crore. On reopening u/s 147, Assessee filed return declaring Rs.70,13,970/-, which AO accepted. AO nevertheless levied penalty of Rs.10,96,347/- for under-reporting, rejecting explanations & refusing immunity. Before Tribunal, Assessee argued that 90% of tax was already deducted at source (page 6) & that ...