It is very difficult to differentiate between under reporting incomes and misreporting income. After going through the Act it is not clear. in fist case penalty is 50 % and in seconds case it is 200%
If there's any difference between returned income and assessed income then it's under reporting and the rate of penalty is 50%. if the under reporting is due to misreporting of income the rate of penalty is 200%. the section empowers to levy penalty on under reporting or misreporting of income is 270A and not 270aa
CAclubindia
