https://www.taxtmi.com/caselaws?id=786774 Penalty under section 270A was sustained where an assessee claimed interest under section 57 against interest income but failed to establish a direct nexus between borrowed funds and loans advanced; the assessment recorded higher income and the assessee did not appeal. The tribunal applied the statutory scheme governing under reporting and concluded that a substantive deduction unsupported by evidence, coupled with non disclosure of material facts and no estimate of disallowance, meets the statutory definition of under reporting, permitting levy of penalty. Outcome: penalty for under reporting upheld in favour of revenue. en-us Fri, 06 Feb 2026 00:00:00 +0530 Thu, 19 Feb 2026 07:58:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=786774 Penalty under section 270A was sustained where an assessee claimed interest under section 57 against interest income but failed to establish a direct nexus between borrowed funds and loans advanced; the assessment recorded higher income and the assessee did not appeal. The tribunal applied the statutory scheme governing under reporting and concluded that a substantive deduction unsupported by evidence, coupled with non disclosure of material facts and no estimate of disallowance, meets the statutory definition of under reporting, permitting levy of penalty. Outcome: penalty for under reporting upheld in favour of revenue. Case-Laws Income Tax Fri, 06 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=786774