Penalty u/s 270A deleted — Estate of deceased cannot be penalised for non-filing when probate was pending

*ITAT Kolkata — Key Ruling*

*ITA No. 2810/KOL/2025 | A.Y. 2020-21 | Pronounced: 15.04.2026*

*Penalty u/s 270A deleted — Estate of deceased cannot be penalised for non-filing when probate was pending*

*Facts at a glance*

* Deceased on: 13 June 2019

* Probate granted: 09 March 2022

* Income declared: ₹80,68,052 (Form 26AS)

* Penalty levied: ₹12,77,227 u/s 270A

*ITAT's reasoning*

* Return could not be filed without a court-granted probate — obligation arises only after receipt of probate order

* Income was fully reflected in Form 26AS with TDS @ 10% — no suppression of income

* Explanation by executors held bona fide u/s 270A(6)(a) — reasons beyond their control & capacity

* COVID period (FY 2020-21 & 2021-22) caused 3-year delay; Supreme Court suo moto extended limitation till 28.02.2022 — probate received on 15.03.2022 fell within this window

* Income Tax Dept's own FAQs (Q4 & Q7) confirm executor's obligation to file arises only after court order — Tribunal applied department's own guidelines against it

*Outcome: Appeal Allowed*

CIT(A) order set aside. AO directed to delete the penalty of ₹12,77,227.

*Key takeaways for practitioners*

* For estates of deceased persons, the clock for filing ITR starts only from the date of receiving the probate — not from the date of death.

* Section 270A(6)(a) offers meaningful protection where non-filing stems from genuine, documented legal constraints.

* The Supreme Court's COVID limitation extension (up to 28.02.2022) continues to be a relevant shield in estate-related proceedings.

* Department's own FAQs/guidelines can be used to contest penalty orders.