ITAT held that penalty under section 270A could not be sustained...

ITAT held that penalty under section 270A could not be sustained where the assessee had made full disclosure of a trading loss and the AO's action amounted only to a taxonomic recharacterisation from non-speculative business loss to speculation loss. No additional tax was levied and there was no foundational under-reported income or culpable conduct as required for imposition of the statutory penalty. The Tribunal agreed with the appellate authority that the issue was one of legal characterisation of an admitted claim, not suppression or falsity, and therefore the rigours of section 270A were inapplicable. Penalty deleted and decision affirmed in favour of the assessee.