Penalty cannot be levied merely for addition during Quantum Proceedings

Ranjit D. Rathod Vs ITO (ITAT Rajkot) Introduction: The case of Ranjit D. Rathod Vs ITO (ITAT Rajkot) revolves around the distinct nature of penalty proceedings and assessment proceedings. It highlights the importance of proper verification before levying penalties under section 271(1)(c) of the Income Tax Act. Detailed Analysis: The penalty was initiated due to the addition made during the assessment proceedings for underreporting of sales. However, it is emphasized that penalty proceedings are separate from assessments. The Assessing Officer (AO) cannot solely rely on additions made during q...