AO changed foundation for levy of penalty – ITAT deletes penalty for inconsistency

Sheetal Mehra Vs ITO (ITAT Delhi)

The Income Tax Appellate Tribunal (ITAT) Delhi division recently made a critical decision in the case of Sheetal Mehra vs. the Income Tax Officer (ITO). This case revolved around the imposition of a penalty under Section 271(1)(c) of the Income Tax Act, 1961, and how changing interpretations of the alleged default led to the penalty’s deletion.

In the course of assessment proceedings, the Assessing Officer (AO) initiated the penalty based on an alleged concealment of income. How

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