Penalty u/s 270A on PF/ESI Disallowance Deleted – Mere Disallowance Not Misreporting: ITAT Chennai

Myunghwa Automotive India Private Limited Vs ITO (ITAT Chennai) Penalty u/s 270A for PF/ESI disallowance deleted – Mere disallowance ≠ misreporting; Checkmate ruling not basis for penalty – ITAT Chennai In Myunghwa Automotive India Pvt. Ltd. vs ITO (A.Y. 2017-18), penalty of ₹5.28 lakh u/s 270A was levied at 200% alleging “misreporting of income” due to disallowance of delayed employees’ PF/ESI contributions u/s 36(1)(va). The CIT(A) upheld the penalty relying on the Supreme Court ruling in Checkmate Services. The ITAT held that penalty for misreporting u/s 270A(9) can be levied ...