Minor had Rs 1.17cr interest income, father faced Rs 12.83L penalty; what ITAT did

Can a minor child’s interest income lead to an income tax notice for the father? The Income Tax Appellate Tribunal (ITAT) Delhi has held that a father cannot be subjected to a Rs 12.83 lakh penalty under Section 270A when the income declared in his ITR is the same as the income ultimately assessed, and the only dispute concerns his eligibility for a tax benefit under the India-United Arab Emirates (UAE) DTAA.The ruling arose from the tax dispute involving a man in New Delhi. He filed his income tax return on November 4, 2022, reporting total income of Rs 8.43 crore.The case was subsequently reopened by the Income Tax Assessing Officer (AO) at Jhandewalan on March 22, 2025. The officer changed the tax rate applicable to Rs 1.17 crore of interest income earned by the individual’s minor child and clubbed that income with Lalwani's own income.