Under-reporting vs Misreporting Confusion Fatal to Section 270A Penalty: ITAT Delhi

Kanodia Technoplast Limited Vs ACIT (ITAT Delhi) Lack of Clarity on “Under-reporting vs Misreporting” Fatal to Penalty Proceedings-Penalty u/s 270A Deleted Assessee filed its return declaring income of ₹11.25 crores. Assessment u/s 143(3) was completed after disallowing ₹73,948/- as interest to MSME creditors & ₹8.84 lakhs towards late deposit of employees’ PF/ESI contribution. AO initiated penalty u/s 270A & levied ₹1.49 lakhs, which was confirmed by CIT(A). CIT(A) held that post-2017, penalty is automatic whenever assessed income exceeds returned income. Before Tribunal...