No Section 270A Penalty if AO Did Not Specify Under-Reporting or Misreporting

Sonal Jain Vs ITO (ITAT Agra) The ITAT Agra allowed the assessee’s appeal and deleted the penalty imposed under Section 270A of the Income-tax Act for Assessment Year 2017-18. The case arose from a difference between turnover reported in the VAT return and the audit report, which the assessee attributed to an incorrect audit report filed by the professional. The Assessing Officer estimated income at 8% of the short-declared turnover, accepted the revised turnover, and imposed a penalty at 200% of the tax payable for alleged misreporting of income. The Tribunal held that Section 270A distingu...