01 January 2020
Penalty on Exempted Trust under Section 270A of Income Tax Act 1961 for under reporting of Income consequences to mis reporting.
During assessment proceeding, truat made submission for making prima facie adjustments for mistake apparent from records for correction of exemption amount instead of Rs 1330000 to Rs 660000. Further quoted case of copy of ITAT Delhi of ICAI vs CPC banglor for the same. While filing return Gross receipt has been filed instead of Net Income.
AO Pass order for exemption of 660000 and demand is Nil.
Whether penalty could be made under 270A where penalty amount is 200% of tax payable, and here tax is zero payable.
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