Topic

Bonafide Belief

2 articlesLatest May 2026
Section 270A IT Act | Penalty Quashed for Failure to Specify Misreporting Limb in Show-Cause Notice : ITAT Bangalore
Case Law Analysis
|Income Tax Appellate Tribunal

Section 270A IT Act | Penalty Quashed for Failure to Specify Misreporting Limb in Show-Cause Notice : ITAT Bangalore

ITAT Bangalore set aside a penalty under Section 270A of the Income Tax Act, ruling that a show-cause notice must explicitly specify the limb of misreporting to sustain the penalty. The tribunal held that bonafide reliance on Form 16 constitutes valid disclosure under Section 270A(6)(a), protecting assessees from arbitrary penalties.

Voluntary Service Tax Payment Before SCN Bars Penalties Under Sections 78 & 77 | CESTAT Hyderabad Upholds Penalty Waiver for Bonafide Disclosure
Case Law Analysis
|Custom, Excise & Service Tax Tribunal

Voluntary Service Tax Payment Before SCN Bars Penalties Under Sections 78 & 77 | CESTAT Hyderabad Upholds Penalty Waiver for Bonafide Disclosure

CESTAT Hyderabad ruled that voluntary payment of service tax and interest before issuance of a Show Cause Notice (SCN), coupled with a bonafide belief and no suppression of facts, invalidates penalties under Sections 78 and 77 of the Finance Act. The decision reinforces the principle that proactive compliance can shield taxpayers from punitive measures, offering relief to businesses under the Reverse Charge Mechanism.

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