https://www.taxtmi.com/caselaws?id=787468 Deletion of penalty under the Income-tax Act for furnishing inaccurate particulars was upheld where the assessee declared nil income on a bona fide belief of no permanent establishment and sought an advance ruling; subsequent assessment under the special business income provision did not establish concealment because no particulars in the return were shown to be false. The tribunal applied the Explanation 1 tests: an explanation must be proved false or the assessee must fail to show bona fides and full disclosure. A mere incorrect legal claim or difference of opinion on taxability does not attract the penalty. en-us Wed, 18 Feb 2026 00:00:00 +0530 Fri, 06 Mar 2026 08:30:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787468 Deletion of penalty under the Income-tax Act for furnishing inaccurate particulars was upheld where the assessee declared nil income on a bona fide belief of no permanent establishment and sought an advance ruling; subsequent assessment under the special business income provision did not establish concealment because no particulars in the return were shown to be false. The tribunal applied the Explanation 1 tests: an explanation must be proved false or the assessee must fail to show bona fides and full disclosure. A mere incorrect legal claim or difference of opinion on taxability does not attract the penalty. Case-Laws Income Tax Wed, 18 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787468