Please Help: Penalty U/s 270A

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Dear Sir, I was listening to penalty u/s 270A by Dr. Rakesh Gutpa and Somil Aggarwal organized by you on Youtube. It is mentioned that query may be sent directly to you. I am sending the following query and want opinion on the same. Sir, assessee is a proprietor and claimed expenses as labour charges amounting to Rs. 2,50,000/-. In the assessment order, it is mentioned vide notice u/s 142(1) dated 20.09.2019, the assessee was again asked to furnish complete details of expenses. In response to notice, the assessee furnish reply dated 05.10.2019 stating therein that labour charges are paid in cash to the paid labour / hire basis available at the time of shipment as the assessee was an exporter for A.Y. 2017-18. The assessee filed copy of the ledger account of labour charges. The Assessing Officer in the assessment order observed as under: The assessee has not furnished the names all the persons to whom the labour charges were paid. Not complete evidence with regards to payment made by him. Explanation furnished by the assessee has been considered and not found satisfactory. In the absence of any satisfactory reply / justification of expenses claimed by the assessee, it will be fair to make a disallowance of Rs. 70,000/- out of expenses claimed by the assessee. Accordingly, addition of Rs. 70,000/- is made to the returned income of the assessee, penalty proceedings u/s 270A are also initiated for mis-reporting of income. In the assessment order, it is also mentioned initiate penalty u/s 270A for mis-reporting of income. Now, the assessee has received show cause penalty notice u/s 270A through NEAC Centre on portal. Now the assessee wants to have your views and how to file the reply of show cause notice of the penalty. The assessee has not mis-reported any income. The assessee filed copy of the ledger account of labour charges. The addition has been made on estimated basis. The penalty has been initiated for mis-reporting of income. The assessee has not mis-reported any income and it is not covered in section 270A(9). Clause (a) mentioned as mis-representation or suppression of facts. The assessee did not file any appeal against the addition as the amount of addition was very small and deposit the tax within a month of the order. Also filed form no.68 for claiming immunity u/s 270AA but that does not cover mis-reporting of income. As per my knowledge, it covers only under-reporting of income. Sir, I seek your opinion on the above query. Mostly, while passing the assessment order, the assessing officer made lump sum addition on estimated basis. If such addition are treated as mis-reporting then the assessee will have to pay 200% of the penalty. It is a general query and may be facing most of our colleagues. Please guide us and take opinion from Dr. Rakesh Gupta. Thanking You, With Regards, CA S.K. Goyal