ITAT Deletes Section 270A Penalty on Bona Fide Belief

Quick Summary

The Income Tax Appellate Tribunal (ITAT) has cancelled a penalty imposed under Section 270A on a co-operative society. The society had claimed a deduction under Section 80P on interest income, which was initially accepted by the tax authorities. However, a penalty was later levied for alleged underreporting of income. The ITAT found that the deduction was claimed in good faith and that the tax authorities had accepted it on multiple occasions, meaning the income was not underreported. Furthermore, the penalty notice and order were found to be defective for not specifying the relevant sub-clause of Section 270A.

Court :
BANGALORE

Brief :
The Income Tax Appellate Tribunal (ITAT), Bangalore Bench, has deleted the penalty imposed under Section 270A of the Income Tax Act on a co-operative society after holding that the deduction claimed under Section 80P was based on a bona fide belief and could not be treated as underreporting of income.

Citation :
ITA No. 676/BANG/2026

Daily Limit Reached