ITAT Ahmedabad Quashes 270A Penalty on Deemed Income u/s 56(2)(x)

Narayanbhai Shivabhai Patel Vs ITO (ITAT Ahmedabad) ITAT Ahmedabad Quashes Penalty – Deemed Addition u/s 56(2)(x) Not Underreporting- 270A Penalty Based on Deeming Provisions Unjustified: Relief to Property Buyer Assessee filed appeal against the order of CIT(A), NFAC, confirming penalty u/s 270A. Assessee had purchased two properties as co-owner at prices lower than the stamp duty valuation. AO invoked s.56(2)(x) & added Rs.30.50 lakh as deemed income, completing assessment u/s 143(3). AO also levied penalty u/s 270A of Rs.4.75 lakh for under-reporting. CIT(A) upheld penalty. Before Tri...