Bombay HC Stays Section 270A Penalty as Prima Facie Deduction Was Claimed Under Prevailing Law

GM Modular Pvt. Ltd Vs PCIT (Bombay High Court)

In GM Modular Pvt. Ltd Vs PCIT, the petitioner sought quashing of the order dated 20 March 2025 passed under Section 264 of the Income Tax Act, 1961, and the penalty order dated 29 January 2024 levied under Section 270A. The core issue was whether penalty for under-reporting of income could be imposed when the deduction claimed in the return was based on the then-prevailing judgment of the Bombay High Court in CIT v. Ghatge Patil Transports Ltd. Subsequently, that decision was overruled by the Supreme Court i

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