ITAT Mumbai quashes Sections 271(1)(c) Penalty for Lack of Additions in Reassessment

Archana Achyut Sail Vs ITO (ITAT Mumbai)

 The Income Tax Appellate Tribunal (ITAT) Mumbai Bench has set aside penalties imposed on Archana Achyut Sail, a retired Mahanagar Telephone Nigam Limited (MTNL) employee, for alleged income concealment and misreporting for the assessment years (AY) 2016-17 and 2017-18. The Tribunal’s decision, delivered on March 25, 2025, emphasizes the principle that no penalty should be levied if no additions are made to the income declared in response to a Section 148 notice, and highlights the discretionary nature of penalty imposition.