AITA for giving my daughter’s things back that were taken away as punishment?

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AITA for giving my daughter’s things back that were taken away as punishment?

I’m 31 and my husband is 30. Our daughter is 7, and she found a puppy in the front yard and played with it. Turns out it belonged to our neighbors, who were looking for it. They accused her of stealing it, and my husband gave her extra chores. She refused to do them, saying she didn’t steal the puppy.

The neighbors came to apologize a bit later, as their son confessed to losing the puppy on a walk when he took it’s leash off. That’s how it ended up on our yard.

I came home that evening and my husband explained this. He said she should be disciplined for not doing the chores. I said she was right to not accept unearned punishment. He said it’s the principle, and she should listen to her father. I said I would rather die than teach her that she should lay down and accept mistreatment.

We argued and he called me unreasonable. Aita?