https://www.taxtmi.com/caselaws?id=785968 Penalty under the incometax penalty provision was found unsustainable where the taxpayer offered a bona fide explanation based on existing precedent for a deduction, and the tax officer could not establish underreported income. Underreported income requires the income assessed on scrutiny to exceed the income determined on processing of the return; here the assessed income was not greater than the processed return income, so penalty proceedings could not properly be initiated and an interim stay on the penalty order was granted. en-us Tue, 27 Jan 2026 00:00:00 +0530 Tue, 03 Feb 2026 08:39:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=785968 Penalty under the incometax penalty provision was found unsustainable where the taxpayer offered a bona fide explanation based on existing precedent for a deduction, and the tax officer could not establish underreported income. Underreported income requires the income assessed on scrutiny to exceed the income determined on processing of the return; here the assessed income was not greater than the processed return income, so penalty proceedings could not properly be initiated and an interim stay on the penalty order was granted. Case-Laws Income Tax Tue, 27 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=785968