ITAT Bangalore deletes Section 271D penalty as AO failed to record satisfaction

Azad Coach Builders Pvt. Limited Vs ITO (ITAT Bangalore) The Income Tax Appellate Tribunal (ITAT), Bangalore, has set aside a tax penalty of Rs. 25,84,920 levied against Azad Coach Builders Pvt. Limited. The tribunal’s decision was based on a procedural failure by the tax authorities, not the merits of the alleged tax violation. The case, which concerned the assessment year 2012-13, highlights the importance of following a legally prescribed process for imposing penalties. The company’s initial income tax return was accepted by the Assessing Officer (AO). However, a penalty was lat...