Purchase returns accounting discrepancy treated as excess purchases; s.270A "misreporting" penalty rejected and deleted on appeal

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....Penalty under s.270A was levied for alleged misreporting, on the footing that purchase returns were not properly accounted and excess purchases were added to income. The tribunal held that the discrepancy was explained as arising from purchase returns and there was no misrepresentation or suppression of facts within s.270A(9)(a); mere non-acceptance of the explanation and consequent addition did not convert the case into misreporting. The assessee's decision not to further contest the addition and to pay tax while seeking immunity under s.270AA also did not establish misreporting. Accordingly, the penalty could not be sustained and was deleted; the appeal was allowed. - ITAT....