ITAT Deletes Section 270A Penalty Where Leave Encashment Claim Was Bona Fide

Dhanuka Agritech Ltd. Vs ACIT (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT), Delhi, allowed the assessee’s appeal against the order of the Commissioner of Income Tax (Appeals) for Assessment Year 2017-18, which had upheld the levy of penalty under Section 270A of the Income-tax Act, 1961 in respect of the disallowance of leave encashment expenditure. The assessee challenged the penalty on several grounds. It contended that the penalty order was illegal and void, that the claim for leave encashment had been made on a provisional basis relying upon judicial precedents, that the iss...