Disallowed Expenditure Claim Not Grounds for Section 271(1)(c) Penalty: ITAT Jaipur

Pradeep Garg Vs ITO (ITAT Jaipur) The Income Tax Appellate Tribunal (ITAT), Jaipur Bench, has set aside a penalty of Rs. 1,71,452/- levied under Section 271(1)(c) of the Income Tax Act, 1961, against assessee Pradeep Garg for the assessment year 2010-11. The penalty, initially imposed by the Income Tax Officer (ITO) and confirmed by the National Faceless Appeal Centre (NFAC), was challenged on grounds of jurisdiction, a vague show cause notice, and the merits of the additions. The case originated from the reopening of Pradeep Garg’s assessment for AY 2010-11 under Section 147 of the Inco...