ITAT deletes Penalty u/s 270 A over Income Discrepancy Caused by Auditors Incorrect Recording of WDV in Tax Audit Report

The ITAT has deleted a penalty imposed under Section 270A of the Income Tax Act, which was levied due to income discrepancies arising from the auditor's incorrect recording of the Written Down Value (WDV) in the tax audit report. The tribunal found that the discrepancy was not the fault of the taxpayer but rather an error by the auditor. Consequently, penalizing the taxpayer would have been unjust. This ruling reinforces that tax penalties should be based on clear taxpayer negligence or wrongdoing, rather than mistakes made by third-party auditors.