https://www.taxtmi.com/caselaws?id=796306 A penalty for misreporting income cannot be sustained merely because a disclosed deduction claim under section 80GGC is disallowed and the taxpayer does not contest the quantum addition. Penalty proceedings remain distinct from assessment proceedings. Misreporting requires evidence of circumstances such as misrepresentation or suppression of facts, false entries, unsubstantiated expenditure, or failure to report receipts. Where the deduction was transparently claimed in the return and no material shows that it was based on false evidence or deliberate misrepresentation, the penalty is unsustainable and must be deleted. en-us Tue, 07 Jul 2026 00:00:00 +0530 Tue, 04 Aug 2026 08:39:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796306 A penalty for misreporting income cannot be sustained merely because a disclosed deduction claim under section 80GGC is disallowed and the taxpayer does not contest the quantum addition. Penalty proceedings remain distinct from assessment proceedings. Misreporting requires evidence of circumstances such as misrepresentation or suppression of facts, false entries, unsubstantiated expenditure, or failure to report receipts. Where the deduction was transparently claimed in the return and no material shows that it was based on false evidence or deliberate misrepresentation, the penalty is unsustainable and must be deleted. Case-Laws Income Tax Tue, 07 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796306