https://www.taxtmi.com/highlights?id=87806 ITAT held that penalty u/s 270A is unsustainable where deduction claim was made transparently based on existing legal interpretation prior to retrospective amendment. The assessee voluntarily surrendered the claim upon becoming aware of amendment and fully disclosed facts during assessment proceedings. No allegation of concealment or suppression existed. Relying on judicial precedent, the tribunal concluded that bona fide interpretation of law, even if subsequently found incorrect, does not attract penalty. The assessee's appeal was allowed, restricting penalty imposition. en-us Sat, 26 Apr 2025 08:30:52 +0530 Sat, 26 Apr 2025 08:30:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=87806 ITAT held that penalty u/s 270A is unsustainable where deduction claim was made transparently based on existing legal interpretation prior to retrospective amendment. The assessee voluntarily surrendered the claim upon becoming aware of amendment and fully disclosed facts during assessment proceedings. No allegation of concealment or suppression existed. Relying on judicial precedent, the tribunal concluded that bona fide interpretation of law, even if subsequently found incorrect, does not attract penalty. The assessee's appeal was allowed, restricting penalty imposition. Highlights Income Tax Sat, 26 Apr 2025 08:30:52 +0530 https://www.taxtmi.com/highlights?id=87806