Section 270A Penalty Notice Without specifying Specific Charge Invalid: ITAT Chennai

Melekandy Puthalath Farook Vs ACIT (ITAT Chennai) ITAT Chennai held that notice u/s 274 r.w.s.270A of the Act was not a valid notice for the reason that the AO did not specify the satisfaction as to whether assessee had either ‘under reported the income or ‘misreported the income’. Thus, imposition of penalty not justified. Facts- The assessee sold certain property situated at Kottivakkam for Rs.172 Lacs. The property was purchased on 20-05-2004 for Rs.23 Lacs. However, Long Term Capital Gains (LTCG) was not offered to tax. The Ld. AO computed LTCG of Rs.112.06 Lacs and framed the assess...