The assessee, a retired bank employee, disclosed the entire amount of leave encashment in the return but claimed full exemption under section 10(10AA) on the basis of a judicial pronouncement and the expectation that the Government would enhance the exemption limit, which was subsequently done prospectively. The Tribunal held that misreporting under section 270A(9) requires deliberate falsification, concealment or suppression of facts. A bona fide legal claim based on a plausible interpretation of law, where all material facts are fully disclosed, cannot be regarded as misreporting. As there was neither concealment nor false disclosure and the explanation offered by the assessee was bona fide, the penalty levied under section 270A was deleted. (AY. 2020-21)