https://www.taxtmi.com/caselaws?id=788043 Fully disclosed claims for deduction of health and education cess, made when judicial precedents supported allowability, may constitute bona fide claims rather than under-reporting or inaccurate particulars. The retrospective Explanation to the cess-disallowance provision applies from 1 April 2005, making the deduction statutorily unavailable. Where the taxpayer voluntarily withdraws the claim during assessment after the retrospective amendment and has disclosed all material facts, the bona fide explanation and full-disclosure exception to penalty applies. Penalty for under-reporting is therefore not sustainable on these facts, and the penalty was deleted. en-us Thu, 12 Mar 2026 00:00:00 +0530 Tue, 17 Mar 2026 11:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=788043 Fully disclosed claims for deduction of health and education cess, made when judicial precedents supported allowability, may constitute bona fide claims rather than under-reporting or inaccurate particulars. The retrospective Explanation to the cess-disallowance provision applies from 1 April 2005, making the deduction statutorily unavailable. Where the taxpayer voluntarily withdraws the claim during assessment after the retrospective amendment and has disclosed all material facts, the bona fide explanation and full-disclosure exception to penalty applies. Penalty for under-reporting is therefore not sustainable on these facts, and the penalty was deleted. Case-Laws Income Tax Thu, 12 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=788043