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Penalty for under-reporting due to ALP adjustment:

ASection 273
BSection 271(1)(c) only (per relevant Section)
CSection 270A (50%, 200% if misreporting)
DNo penalty
Answer & Solution
Correct answer: C. Section 270A (50%, 200% if misreporting)
1. Section 270A replaced 271(1)(c) from AY 2017-18. 2. Under-reporting (incl TP adjustments): 50% of tax on under-reported income; 200% if misreporting. 3. 270AA immunity if tax+interest paid and no appeal — not for misreporting. _Source: ICAI BoS CA Final Paper 7, Ch 24 "Transfer Pricing"_
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