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TMI BlogPenalty for under-reporting and misreporting of income.X X X X Extracts X X X X X X X X Extracts X X X X ..... of sub-section (1) of section 143; (b) the income assessed is greater than the maximum amount not chargeable to tax, where 2 [ no return of income has been furnished or where return has been furnished for the first time under section 148 ] ; (c) the income reassessed is greater than the income assessed or reassessed immediately before such reassessment; (d) the amount of deemed total income assessed or reassessed as per the provisions of section 115JB or section 115JC, as the case may be, is greater than the deemed total income determined in the return processed under clause (a) of sub-section (1) of section 143; (e) the amount of deemed total income assessed as per the provisions of section 115JB or section 115JC is greater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of section 115JB or section 115JC, the amount of total under-reported income shall be determined in accordance with the following formula- (A - B) + (C - D) where, A = the total income 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 under-reported 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 sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deemed to be amount of income under-reported for the preceding year in the following order- (a) the preceding year immediately before the year in which the receipt, deposit or investment appears, being the first preceding year; and (b) 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. (6) The under-reported income, for the purposes of this section, shall not include the following, namely:- (a) the amount of income in respect of which the assessee offers an explanation and the Assessing Officer or 5 [ the Joint Commissioner (Appeals) or the Commissioner (Appeals) ] or the Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted income. (8) Notwithstanding anything contained in sub-section (6) or sub-section (7), where under-reported income is in consequence of any misreporting thereof by any person, the penalty referred to in sub-section (1) shall be equal to two hundred per cent. of the amount of tax payable on under-reported income. (9) The cases of misreporting of income referred to in sub-section (8) shall be the following, namely:- (a) misrepresentation or suppression of facts; (b) failure to record investments in the books of account; (c) claim of expenditure not substantiated by any evidence; (d) recording of any false entry in the books of account; (e) failure to record any receipt in books of account having a bearing on total inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty, if such addition or disallowance has formed the basis of imposition of penalty in the case of the person for the same or any other assessment year. (12) The penalty referred to in sub-section (1) shall be imposed, by an order in writing, by the Assessing Officer, 5 [ the Joint Commissioner (Appeals) or the Commissioner (Appeals) ] , the Commissioner or the Principal Commissioner, as the case may be.] --------------- Notes:- 1. After section 270 of the Income-tax Act [as it stood immediately before its omission by section 105 of the Direct Tax Laws (Amendment) Act, 1987], the above section 270A shall be inserted with effect from the 1st day of April, 2017 vide THE FINANCE ACT, 2016 2. Substituted vide FIN ..... X X X X Extracts X X X X X X X X Extracts X X X X
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