Section 270A penalty Not Sustainable: Lack of Application of Mind & Violation of Principles of natural justice

Saltwater Studio LLP Vs NFAC (ITAT Mumbai) In the case of Saltwater Studio LLP Vs NFAC, the ITAT (Income Tax Appellate Tribunal) examined the legality of the penalty imposed under section 270A of the IT Act for misreporting of income. The AO (Assessing Officer) and the Ld. CIT(A) confirmed the penalty, citing misreporting of income by the assessee. However, the ITAT analyzed the relevant provisions of the Act and concluded that the penalty could not be sustained due to the lack of application of mind and violation of principles of natural justice. The AO had levied a penalty of 200% of the tax...