Assessment Set Aside for Non-Consideration of Mandatory Penalty Provisions

Radheshyam Agarwal Vs PCIT (ITAT Indore) Failure to Initiate Penalty u/s 271AAC Makes Assessment Erroneous: ITAT Indore Upholds PCIT’s Section 263 Revision The Indore Bench of the ITAT upheld the revision order passed by the PCIT under Section 263, holding that the Assessing Officer’s failure to examine and initiate penalty proceedings under Section 271AAC(1) rendered the reassessment order erroneous and prejudicial to the interests of the Revenue. In the assessee’s case, survey under Section 133A revealed excess stock and undisclosed interest income, which were surrendered and offered i...