https://www.taxtmi.com/caselaws?id=765407 The ITAT Chennai held that the PCIT's revision order u/s 263 directing the AO to initiate penalty u/s 270A for under-reporting of income was legally untenable. The tribunal found that without an intimation u/s 143(1)(a), the assessee cannot be considered to have under-reported income under section 270A(2). Since the case did not fall within sub-section (2), invoking sub-section (9) of section 270A was improper. The machinery provisions for penalty computation also failed as under-reported income was not computed per section 270A(2). The tribunal emphasized strict construction of penalty provisions and allowed the assessee's appeal. en-us Wed, 11 Dec 2024 00:00:00 +0530 Fri, 31 Jan 2025 07:54:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=765407 The ITAT Chennai held that the PCIT's revision order u/s 263 directing the AO to initiate penalty u/s 270A for under-reporting of income was legally untenable. The tribunal found that without an intimation u/s 143(1)(a), the assessee cannot be considered to have under-reported income under section 270A(2). Since the case did not fall within sub-section (2), invoking sub-section (9) of section 270A was improper. The machinery provisions for penalty computation also failed as under-reported income was not computed per section 270A(2). The tribunal emphasized strict construction of penalty provisions and allowed the assessee's appeal. Case-Laws Income Tax Wed, 11 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=765407