Penalty not sustainable if related assessment order is quashed: ITAT Mumbai

Bharat Vanmalibhai Modiya Vs ITO (ITAT Mumbai) ITAT Mumbai, in the case of Bharat Vanmalibhai Modiya Vs. ITO, addressed key issues regarding penalty proceedings under section 271(1)(c) of the Income Tax Act. The assessee, Bharat Vanmalibhai Modiya, filed appeals challenging the penalty orders for the assessment years 2010-11 and 2015-16. The case involved a quashing of the assessment order, which formed the basis of the penalty, leading to the central issue: whether penalty proceedings could continue in the absence of a valid assessment order. In the first case for the assessment year 2010-11,...