In a assessment order passed by ITO ito mentioned penalty for misreporting of income in place of under reporting of income. Then what to do.. ITO Disallowed cash expenses u/s 40(a) and treat as misreporting of income. penalty for under reporting of income is 50% and for misreporting is 200%. and there is no immunity available for misreporting penalty..
Then what to do IF ITO levied wrong penalty in assessment order..
Submit a reply against the same. Try to obtain evidences against the cash expenses. If they are genuine try to connect them with the business nature and give a detailed explanation. This might help you and turn down to under reporting of income.
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