Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (10) TMI 971 - ITAT MUMBAIPenalty u/s 270A - “under reporting” of the income - change in the head of income for assessing the rental income - addition made by the AO pertained to the statutory deduction allowable u/s 24(a) of the Act while computing income under the head ‘income from house property’ HELD THAT:- We noticed that the assessee had offered rental income under the head “Income from House Property”, but the assessing officer has assessed the same under the head “Income from business.” The standard deduction @ 30% allowable u/s 24(a) while computing income under the head Income from house property will not be available when it is assessed under the Income from business. Thus, it is not a case that the assessee has suppressed or under reported any income. The assessee has not under reported any income. The addition has arisen on account of change in head of income. We notice that the assessee has offered an explanation as to why it reported the rental income under the head Income from House property and the said explanation is not found to be false. Accordingly, we are of the view that the case of the assessee is covered by clause (a) of sub. sec. (6) of sec. 270A of the Act. We notice that as held in the case of S Saroja [2023 (5) TMI 1262 - ITAT CHENNAI] that bonafide mistake committed while computing total income, the penalty u/s 270A of the Act should not be levied. Decided in favour of assessee.
|