ITR
Penalty after additions made in revision
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Facts
If the fresh assessment after revision adds income, penalty proceedings for under-reporting or misreporting can follow, like in any assessment.
Provisions and law
- Sec 270A, Income-tax Act 1961 (now Sec 439, Income-tax Act 2025)Penalty for under-reporting and misreporting.
- Sec 263, Income-tax Act 1961 (now Sec 377, Income-tax Act 2025)The Principal Commissioner or Commissioner can revise an assessment order that is erroneous and prejudicial to revenue, after giving a hearing, within 2 years from the end of the financial year of the order.
Analysis
Penalty is separate from the addition. If you appeal the addition, ask for the penalty to be kept pending until the appeal decides. Show bona fide explanations to defend against misreporting. Track penalty notices in e-Proceedings.
Conclusion
- Watch for penalty notices after the fresh order.
- Reply with reasons and evidence.
- Ask to keep penalty pending till appeal.
- Appeal any penalty order on time.
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Revision, Sec 263 (now 377)
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