https://www.taxtmi.com/caselaws?id=751527 ITAT Nagpur held that penalty under section 270A for misreporting income was not warranted. The appellant, a former State Government employee whose service was converted to non-governmental employment under Electricity Act 2003, claimed excess exemption on gratuity and leave encashment. The tribunal found the claim was bonafide, not synthetic, as the appellant disclosed all material facts and had reasonable belief due to employment conversion circumstances. The explanation fell within section 270A(6)(a) exception. The penalty imposition being discretionary ("may" not "shall"), the authorities failed to appreciate facts holistically and imposed unwarranted 200% penalty. en-us Tue, 16 Apr 2024 00:00:00 +0530 Thu, 18 Apr 2024 17:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751527 ITAT Nagpur held that penalty under section 270A for misreporting income was not warranted. The appellant, a former State Government employee whose service was converted to non-governmental employment under Electricity Act 2003, claimed excess exemption on gratuity and leave encashment. The tribunal found the claim was bonafide, not synthetic, as the appellant disclosed all material facts and had reasonable belief due to employment conversion circumstances. The explanation fell within section 270A(6)(a) exception. The penalty imposition being discretionary ("may" not "shall"), the authorities failed to appreciate facts holistically and imposed unwarranted 200% penalty. Case-Laws Income Tax Tue, 16 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751527