https://www.taxtmi.com/highlights?id=103468 Under-reporting and misreporting of income attract distinct penalty treatment: under-reporting is penalised at 50% of the tax payable, while under-reporting resulting from misreporting attracts 200% only where specified factual circumstances establish misreporting. Omission of interest income constituted under-reporting, but non-resident status, reliance on an accountant, limited technological knowledge, and later payment of tax and interest did not establish deliberate misreporting. Departmental detection and non-response to notices alone were insufficient for the enhanced penalty. The penalty was therefore restricted to under-reporting, with recomputation. Statutory and show-cause notices, along with opportunities to respond during penalty proceedings, satisfied hearing requirements where the taxpayer did not use those opportunities. en-us Mon, 07 Sep 2026 08:48:57 +0530 Mon, 07 Sep 2026 08:48:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=103468 Under-reporting and misreporting of income attract distinct penalty treatment: under-reporting is penalised at 50% of the tax payable, while under-reporting resulting from misreporting attracts 200% only where specified factual circumstances establish misreporting. Omission of interest income constituted under-reporting, but non-resident status, reliance on an accountant, limited technological knowledge, and later payment of tax and interest did not establish deliberate misreporting. Departmental detection and non-response to notices alone were insufficient for the enhanced penalty. The penalty was therefore restricted to under-reporting, with recomputation. Statutory and show-cause notices, along with opportunities to respond during penalty proceedings, satisfied hearing requirements where the taxpayer did not use those opportunities. Highlights Income Tax Mon, 07 Sep 2026 08:48:57 +0530 https://www.taxtmi.com/highlights?id=103468