https://www.taxtmi.com/caselaws?id=471287 Penalty notices under Section 274 read with Section 270A must clearly identify whether the charge is under-reporting or misreporting and, for misreporting, the relevant statutory basis. Notices using both expressions without specifying the applicable limb deny a meaningful opportunity to respond and invalidate the consequential penalty proceedings. Estimated additions for spent-solvent and scrap receipts, and cash expenditure recorded in regular books, do not by themselves establish misreporting where the explanation is bona fide and material facts are disclosed. Further, where income returned under Section 153A is accepted without variation, no under-reported income arises because the relevant comparison is with the assessed income. en-us Wed, 25 Feb 2026 00:00:00 +0530 Thu, 27 Aug 2026 17:06:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=471287 Penalty notices under Section 274 read with Section 270A must clearly identify whether the charge is under-reporting or misreporting and, for misreporting, the relevant statutory basis. Notices using both expressions without specifying the applicable limb deny a meaningful opportunity to respond and invalidate the consequential penalty proceedings. Estimated additions for spent-solvent and scrap receipts, and cash expenditure recorded in regular books, do not by themselves establish misreporting where the explanation is bona fide and material facts are disclosed. Further, where income returned under Section 153A is accepted without variation, no under-reported income arises because the relevant comparison is with the assessed income. Case-Laws Income Tax Wed, 25 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=471287