https://www.taxtmi.com/highlights?id=100992 Penalty under section 270A was held unsustainable where a charitable trust's depreciation claim was disallowed, but the income, after giving effect to the quantum order allowing accumulation, still remained nil and no tax was payable. The Tribunal's reasoning was that disallowance of an inadmissible claim does not by itself amount to under-reporting; the section requires a real statutory basis, such as assessed income exceeding returned income. With no positive assessed income, tax effect, or demonstrated carry-forward benefit, the penalty was deleted. en-us Mon, 22 Jun 2026 08:39:17 +0530 Mon, 22 Jun 2026 08:39:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=100992 Penalty under section 270A was held unsustainable where a charitable trust's depreciation claim was disallowed, but the income, after giving effect to the quantum order allowing accumulation, still remained nil and no tax was payable. The Tribunal's reasoning was that disallowance of an inadmissible claim does not by itself amount to under-reporting; the section requires a real statutory basis, such as assessed income exceeding returned income. With no positive assessed income, tax effect, or demonstrated carry-forward benefit, the penalty was deleted. Highlights Income Tax Mon, 22 Jun 2026 08:39:17 +0530 https://www.taxtmi.com/highlights?id=100992