Assessment Quashed, Penalty Falls – ITAT Delhi Quashes Section 271AAC Penalty

Shiv Arora Vs ITO (ITAT Delhi) Penalty Dies with Quantum – ITAT Delhi Deletes 271AAC Levy – When Assessment Goes, Penalty Goes Too – ITAT Delhi Follows Settled Law Assessee’s assessment was completed ex-parte u/s 144 on 23.04.2024, & a penalty of ₹18.01 lakh was later imposed u/s 271AAC(1). The appeal before CIT(A) was delayed by about ten months & was dismissed on grounds of limitation. Tribunal held that CIT(A) erred in refusing to condone the delay, since sufficient cause was shown, & more importantly, the quantum order was already annulled by CIT(A) on 19.02.2025 ...