Section 270AA penalty immunity requires identified statutory defaults and a hearing before rejection; reassessment disclosure may constitute under-reporting.

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....Section 270AA penalty immunity cannot be rejected without identifying the statutory condition not met and giving the assessee an opportunity of hearing. The immunity application requires fresh consideration so that compliance with the prescribed conditions can be demonstrated; where immunity is available, consequential penalty proceedings become infructuous. Where no original return was filed and income was disclosed only in response to a reassessment notice, the disclosed income constitutes under-reported income in the absence of an explanation for the initial non-filing. If immunity is denied, penalty proceedings require a speaking order after hearing the assessee.....