Penalty for under-reporting and misreporting of income - Section 270A

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....270A (2)] The amount of under-reported income [Section 270A(3)] First Time Assessment (a) In case of Return Filed - The income assessed is greater than the income determined in the return processed u/s 143(1)(a) The difference between the amount of income assessed and the amount of income determined u/s 143(1)(a) (b) In case of Return not Filed - Where no return of income has been furnished and the income assessed is greater than the maximum amount not chargeable to tax (A) The amount of income assessed, in the case of a company, firm or local authority (B) The difference between the amount of income assessed and the maximum amount not chargeable to tax, in a case not covered in item (A) Reassessment (c) The incom....

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.... assessed as per the provisions other than the provisions contained in section 115JB or section 115JC (herein called general provisions); B = the total income that would have been chargeable had the total income assessed as per the general provisions been reduced by the amount of underreported income; C = the total income assessed as per the provisions contained in section 115JB or section 115JC; D = the total income that would have been chargeable had the total income assessed as per the provisions contained in section 115JB or section 115JC been reduced by the amount of under-reported income Provided further that where the amount of under-reported income on any issue is considered both under the provisions contained in section....

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....rst preceding year; and • where the amount added or deducted in the first preceding year is not sufficient to cover the receipt, deposit or investment, the year immediately preceding the first preceding year and so on. The under-reported income, for the purposes of this section, shall not include the following, namely [Section 270A(6)]:- Sr. No. Cases Conditions 1. the amount of income in respect of which the assessee offers an explanation • AO/CIT/CIT(A) is satisfied that explanation is bona-fide; and • All material facts have been disclosed to substantiate the explanation. 2. the amount of under-reported income determined on the basis of an estimate, if the accounts are cor....

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.... 270A(1) shall be equal to 200% of the amount of tax payable on under-reported income [Section 270A(8)]. Cases of misreporting of income [Section 270A(9)] The cases of misreporting of income referred to in section 270A(8) shall be the following, namely:- • Misrepresentation or suppression of facts (Ex: Normal LTCG shown as LTCG u/s 112A) • Failure to record investments in the books of account (Ex ; AO discovered investment) • Claim of expenditure not substantiated by any evidence (Bogus Bills) • Recording of any false entry in the books of account (Bogus Expenditure) • Failure to record any receipt in books of account having a bearing on total income • Failu....