Pass pundit returning on American mount of legend (7)
I believe the answer is:
pegasus
'pass pundit returning' is the definition.
I can't judge whether this definition defines the answer.
'on american mount of legend' is the wordplay.
'on' indicates putting letters inside (as in clothing 'on' a person).
'american' becomes 'usa'.
'mount of' is a reversal indicator (I've seen 'mounted' mean this).
'legend' becomes 'pegs' (I am not sure about this - if you are sure you should give a lot more credence to this answer).
'usa' written backwards gives 'asu'.
'asu' inserted within 'pegs' is 'PEGASUS'.
Can you help me to learn more?
(Other definitions for pegasus that I've seen before include "fabulous horse" , "Flier" , "with a place in the firmament" , "Mount flying" , "Inspirational figure" .)