Penalty Misreporting or Under Reporting of Income has to be Clearly Mentioned in the Penalty Notice Issued Under Section 274 r/w Section 270A

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The Tax Publishers Income Tax--Penalty Misreporting or Under Reporting of Income has to be Clearly Mentioned in the Penalty Notice Issued Under Section 274 r/w Section 270A Akhilesh Kumar Sah Notice issued without striking off the irrelevant limb/specifying the charge for which the notice is being issued may be quashed under section 271(1)(c) and also under new section 270A which provides different penalties for misreporting or under-reporting of income. 1. Introduction Section 270A of the Income Tax Act, 1961 (for short, 'the Act'), which has been introduced with effect from assessment year 2017-18) deals with the penalty for under-reporting and misreporting of income. For imposing penalty, Assessing Officer (AO) has to specify in the notice whether the penalty is being levied for misreporting or under-reporting of income, otherwise penalty notice may be quashed. Earlier, where penalty notice was issued under section 271(1)(c) of the Act, the charge for which the notice was being issued has to be specified. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Income Tax--Penalty

Misreporting or Under Reporting of Income has to be Clearly Mentioned in the Penalty Notice Issued Under Section 274 r/w Section 270A

Akhilesh Kumar Sah

Notice issued without striking off the irrelevant limb/specifying the charge for which the notice is being issued may be quashed under section 271(1)(c) and also under new section 270A which provides different penalties for misreporting or under-reporting of income.

1. Introduction

Section 270A of the Income Tax Act, 1961 (for short, 'the Act'), which has been introduced with effect from assessment year 2017-18) deals with the penalty for under-reporting and misreporting of income. For imposing penalty, Assessing Officer (AO) has to specify in the notice whether the penalty is being levied for misreporting or under-reporting of income, otherwise penalty notice may be quashed. Earlier, where penalty notice was issued under section 271(1)(c) of the Act, the charge for which the notice was being issued has to be specified.