https://www.taxtmi.com/caselaws?id=793695 Penalty for under-reporting under section 270A requires a real statutory tax consequence and does not arise automatically from every disallowed claim. For a charitable trust, disallowance of depreciation under section 11(6) does not establish under-reporting where appellate relief under section 11(2) leaves assessed income at Nil and no tax is payable. In the absence of a present or future tax advantage, a statutorily relevant loss reduction, or other demonstrated tax effect, an inadmissible claim alone cannot support penalty. Penalty under section 270A is therefore not leviable in these circumstances. en-us Tue, 19 May 2026 00:00:00 +0530 Mon, 22 Jun 2026 08:39:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=793695 Penalty for under-reporting under section 270A requires a real statutory tax consequence and does not arise automatically from every disallowed claim. For a charitable trust, disallowance of depreciation under section 11(6) does not establish under-reporting where appellate relief under section 11(2) leaves assessed income at Nil and no tax is payable. In the absence of a present or future tax advantage, a statutorily relevant loss reduction, or other demonstrated tax effect, an inadmissible claim alone cannot support penalty. Penalty under section 270A is therefore not leviable in these circumstances. Case-Laws Income Tax Tue, 19 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=793695