ITAT Sets Aside Penalty Order as core quantum appeal was pending

Murmu Pankaj Kumar Vs ITO (ITAT Bangalore) In a recent ruling, the Income Tax Appellate Tribunal (ITAT), Bengaluru, has set aside a penalty order issued against taxpayer Murmu Pankaj Kumar, deeming it premature. The penalty, imposed under Section 271(1)(c) of the Income Tax Act, 1961, was issued while the assessee’s appeal against the original assessment order was still pending before the Commissioner of Income Tax (Appeals) [CIT(A)]. The ITAT’s decision highlights a procedural issue where a penalty cannot be finalized before the underlying tax liability is definitively determined....