Penalty U/s 270A Deleted – AO Failed to Specify Misreporting Clause

AVM Productions Vs ACIT (ITAT Chennai) The assessee, M/s AVM Productions, filed its return declaring a loss of ₹1.62 crore. The AO noticed that the assessee had claimed depreciation attributable to ₹3 crore paid as compensation to resolve a dispute relating to construction, which had been capitalized in the building block. Since depreciation on this amount had already been disallowed in earlier years and upheld by appellate authorities, the AO disallowed consequential depreciation of ₹11,04,148 for AY 2017-18 and initiated penalty proceedings u/s 270A for misreporting of income. Penalty ...