Penalty Cannot Stand When Quantum Addition Is Reversed: ITAT Pune

Abdulwahid Abdulkarim Qureshi Vs ITO (ITAT Pune) Penalty Cannot Survive Without Quantum Addition: Section 271(1)(c) Levy Deleted The Pune Bench of the Income Tax Appellate Tribunal (ITAT) deleted the penalty of ₹47.94 lakh levied under section 271(1)(c), holding that once the underlying quantum addition itself is deleted, the penalty has no legs to stand on. In this case for AY 2016-17, the Assessing Officer had levied penalty at 100% of tax sought to be evaded on an addition of ₹1.38 crore, treated as unexplained cash credit under section 68. The CIT(A)/NFAC had confirmed the penalty. How...