https://www.taxtmi.com/caselaws?id=796683 Penalty for underreporting is not automatic where a deduction claim rests on a genuine, bona fide explanation and was accepted in assessment and earlier rectification proceedings. The statutory exclusion for a genuine explanation applied, so the income was not treated as underreported and the penalty was deleted. A penalty notice and order must also identify the applicable statutory limb; a general reference to the penalty provision without specifying the relevant sub-clause makes the levy unsustainable. The alleged underreporting penalty was therefore deleted. en-us Tue, 04 Aug 2026 00:00:00 +0530 Sat, 08 Aug 2026 08:32:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796683 Penalty for underreporting is not automatic where a deduction claim rests on a genuine, bona fide explanation and was accepted in assessment and earlier rectification proceedings. The statutory exclusion for a genuine explanation applied, so the income was not treated as underreported and the penalty was deleted. A penalty notice and order must also identify the applicable statutory limb; a general reference to the penalty provision without specifying the relevant sub-clause makes the levy unsustainable. The alleged underreporting penalty was therefore deleted. Case-Laws Income Tax Tue, 04 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796683