ITAT Ahmedabad Quashes Section 270A Penalty for Vague Notice

Snehalkumar Bhogilal Trivedi Vs ITO (ITAT Ahmedabad) Under-Reporting or Misreporting? – Vague 270A Notice Proves Fatal- ITAT Says AO’s Confusion Invalidates 270A Penalty Assessee filed return of income for AY 2018-19 claiming exemption of capital gains u/s 54F. AO disallowed the claim of ₹25.76 lakh on the ground that Assessee had no evidence of sale or purchase of capital asset & that the exemption was wrongly claimed. Consequently, AO initiated penalty u/s 270A for misreporting of income. However, in the notice issued u/s 274, AO mentioned both defaults of under-reporting & mis...