#Section 270A IT Act

ITAT Ahmedabad sets a precedent that penalties under Section 270A for misreporting income cannot be imposed without concrete proof of false particulars or deliberate suppression, even if a deduction is disallowed. This ruling reinforces natural justice principles, protecting taxpayers from arbitrary penalties based solely on disallowed claims.

ITAT Patna rules that penalty under Section 270A of the Income Tax Act cannot be imposed automatically for delayed return filing if the income is fully disclosed via TDS and the assessee demonstrates bona fide reasons. The ruling emphasizes that judicial discretion must be exercised, offering relief to taxpayers facing procedural lapses without intent to evade tax.