https://www.taxtmi.com/caselaws?id=796321 A deduction claim for a political donation, transparently disclosed in the return, does not amount to misreporting merely because it is disallowed on doubts about genuineness or admissibility. Misreporting requires material showing false evidence, suppression, or deliberate misrepresentation, and penalty proceedings remain independent of assessment proceedings. The Assessing Officer must also identify the specific statutory limb relied upon to classify under-reported income as misreported income. In the absence of both proof of misreporting and specification of the applicable limb, the penalty at the misreporting rate was unsustainable and deleted. en-us Thu, 30 Jul 2026 00:00:00 +0530 Tue, 04 Aug 2026 08:39:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796321 A deduction claim for a political donation, transparently disclosed in the return, does not amount to misreporting merely because it is disallowed on doubts about genuineness or admissibility. Misreporting requires material showing false evidence, suppression, or deliberate misrepresentation, and penalty proceedings remain independent of assessment proceedings. The Assessing Officer must also identify the specific statutory limb relied upon to classify under-reported income as misreported income. In the absence of both proof of misreporting and specification of the applicable limb, the penalty at the misreporting rate was unsustainable and deleted. Case-Laws Income Tax Thu, 30 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796321