Penalty U/s 270A Quashed: No Specific Charge of “Misreporting” = No Penalty

Indian Academy Education Trust Vs DCIT (Exemptions) (ITAT Bangalore) The ITAT Bangalore deleted penalty levied under Section 270A holding that failure to specify the exact limb of “misreporting” renders the penalty invalid. The assessee, a charitable trust, had inadvertently claimed double deduction—both depreciation and capital expenditure as application of income. However, even before completion of assessment, the assessee voluntarily withdrew the depreciation claim, and the assessment ultimately resulted in nil income. Despite this, the AO levied 200% penalty (₹1.22 crore) alleging ...