https://www.taxtmi.com/caselaws?id=774056 ITAT Delhi allowed the assessee's appeal against penalty u/s 270A imposed for disallowing leave encashment claim. The tribunal held that under section 270A(6)(a), under-reported income excludes amounts where assessee offers bona fide explanation with material facts disclosed. Both lower authorities failed to deny that assessee provided bona fide explanation for the claim. Despite adequate disclosure in annual accounts, CIT(A) rejected the explanation without strong reasons. The tribunal found the leave encashment claim was made on provisional basis involving debatable issues with bona fides established, making penalty imposition unsustainable. en-us Mon, 30 Jun 2025 00:00:00 +0530 Wed, 02 Jul 2025 08:42:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774056 ITAT Delhi allowed the assessee's appeal against penalty u/s 270A imposed for disallowing leave encashment claim. The tribunal held that under section 270A(6)(a), under-reported income excludes amounts where assessee offers bona fide explanation with material facts disclosed. Both lower authorities failed to deny that assessee provided bona fide explanation for the claim. Despite adequate disclosure in annual accounts, CIT(A) rejected the explanation without strong reasons. The tribunal found the leave encashment claim was made on provisional basis involving debatable issues with bona fides established, making penalty imposition unsustainable. Case-Laws Income Tax Mon, 30 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774056