ITAT Deletes Section 271AAB Penalty as SCN Not Specified Statutory Charge

Advertisement ACIT Vs Smt. Pallem Reddy Sreelakshmi (ITAT Hyderabad) The Revenue filed two appeals challenging the orders of the Commissioner of Income Tax (Appeals) [CIT(A)] deleting penalties imposed under Section 271AAB of the Income-tax Act, 1961 for Assessment Year 2017-18. The penalties amounted to ₹1,89,92,857 and ₹1,62,78,425, respectively. The principal issue before the Tribunal was whether the show cause notices issued under Section 274 read with Section 271AAB were legally valid when they did not specify the applicable statutory limb or the precise charge for levy of penalty....