Penalty Proceedings cannot be Challenged before Formal Order: ITAT Delhi

Tekchand Vs ITO (ITAT Delhi) Introduction: In a recent judgement involving Tekchand and the Income Tax Officer (ITO) issued by the Income Tax Appellate Tribunal (ITAT) in Delhi, it was declared that the mere initiation of penalty proceedings cannot be challenged unless a formal order has been passed. This conclusion arose in relation to an appeal filed by the appellant (Tekchand) concerning the assessment year 2015-16, disputing an addition to taxable income due to a perceived error during the assessment process. Analysis: The case revolved around the addition of Rs 9,13,100 to the appellant&#...