Penalty Cannot Survive After Deletion of Quantum Addition: ITAT Pune

Vikram Sugriv Kale Vs ITO (ITAT Pune) Penalty Cannot Survive After Deletion of Quantum Addition: ITAT Pune Cancels Penalty u/s 271AAC Despite No Appeal Against Penalty Order The Pune Bench of the ITAT allowed the assessee’s appeal for AY 2018-19 and deleted the penalty of ₹2.67 lakh levied u/s 271AAC(1), holding that once the underlying quantum addition is deleted, the penalty has no legs to stand. In the present case, the CIT(A)/NFAC had already deleted the entire addition on merits, and the Revenue had not challenged that deletion. Despite this, the Assessing Officer refused to cancel th...