Assessee had made a disallowance of Rs. 3.20 crores which was recomputed by Assessing Officer at Rs. 6.82 crores. The Assessing Officer levied penalty  under section 270A alleging misreporting of income. The assessee made petition for waiver of penalty under section 270AA of the Act, which was rejected.  The assessee filed writ challenging the said rejection. Allowing the petition  the Court held that whether underreporting allegedly done by assessee could not amount to misreporting as assessee had furnished all details of transactions relating to disallowance made under section 14A and Assessing Officer as well as assessee had used same details to arrive at different conclusions i.e. differing quantum of disallowances under section 14A.  This by no stretch of imagination could be held to be ‘misreporting’.  In absence of details as to which limb of section 270A was attracted and how ingredient of sub-section (9) of section 270A was satisfied, mere reference to word ‘misreporting’ by revenue in penalty order to deny immunity from imposition of penalty and prosecution makes impugned order manifestly arbitrary. Therefore penalty order was to be quashed and revenue was to be directed to grant immunity under section 270AA of the Act.  (AY. 2018-19)