https://www.taxtmi.com/caselaws?id=771213 ITAT Mumbai allowed assessee's appeal against penalty u/s 270A imposed for claiming interest on housing loan against rental income. AO denied carry forward of loss, alleging property was not genuinely let out and assessee lacked full ownership. ITAT held that since assessee declared nil income and loss under house property wasn't set off against any income, no benefit was derived from alleged non-genuine rental income. Tribunal emphasized penalty imposition is discretionary, not mandatory, and should be exercised judicially considering all circumstances. Given facts, AO should have exercised discretion not to impose penalty. en-us Mon, 05 May 2025 00:00:00 +0530 Thu, 22 May 2025 08:21:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771213 ITAT Mumbai allowed assessee's appeal against penalty u/s 270A imposed for claiming interest on housing loan against rental income. AO denied carry forward of loss, alleging property was not genuinely let out and assessee lacked full ownership. ITAT held that since assessee declared nil income and loss under house property wasn't set off against any income, no benefit was derived from alleged non-genuine rental income. Tribunal emphasized penalty imposition is discretionary, not mandatory, and should be exercised judicially considering all circumstances. Given facts, AO should have exercised discretion not to impose penalty. Case-Laws Income Tax Mon, 05 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771213