ITA 4420/MUM/2026

Parties Involved

Facts Summary

This appeal is filed by the assessee against the order of the learned Commissioner of Income Tax (Appeals)-NFAC, Delhi, dated 20.02.2026 for the assessment year 2021-22 which arises out of the penalty order passed u/s. 270A of the Act. Counsel for the assessee submitted that the learned CIT(A) dismissed the appeal on a mistaken impression that the assessee had opted under Direct Taxes Vivad se Viswas Scheme (DTVSVS). The counsel for the assessee argued that the assessee had neither opted for the scheme nor submitted any such claim before the learned CIT(A). The counsel further submitted that the quantum additions made in the assessment order passed u/s. 143(3) of the Act, which is the basis for levy of penalty u/s. 270A of the Act, was set aside by the Ld. PCIT u/s. 263 of the Act, vide order dated 27.05.2024. The Assessing Officer was directed to make a thorough inquiry and reassess the income as per the provisions of the Act after giving opportunity to the assessee.…

Legal Issues

• 1. Whether the learned CIT(A) was justified in dismissing the appeal on the mistaken impression that the assessee had opted under DTVSVS.
• 2. Whether the basis for levy of penalty u/s. 270A of the Act survives after the quantum additions made in the assessment order passed u/s. 143(3) of the Act were set aside.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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