ITAT Deletes Penalty on Adhoc Expense Disallowance Where No Incriminating Material Found

ITO Vs Micro Plantea Limited (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT) Mumbai has upheld the deletion of a penalty amounting to Rs. 16,29,627/- levied against Micro Plantea Limited. The penalty, imposed under Section 271(1)(c) of the Income Tax Act, was connected to disallowances of finance expenses, operative and other expenses, depreciation, and balance written off for the Assessment Year 2007-08. The case originated from a search action conducted under Section 132 of the Income Tax Act on September 24, 2009, against the Temptation Foods Group, leading to a notice issued to Micr...