ITAT Deletes Penalty Despite Bogus Purchase Finding Due to Faulty Charge

Anil K. Shah (HUF) Vs ITO (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT), Mumbai, deleted a penalty of Rs. 6,96,096/- levied under Section 271(1)(c) of the Income Tax Act, 1961, against Anil K. Shah (HUF) for the Assessment Year (AY) 2009-10. While the Tribunal acknowledged that the underlying quantum appeal had confirmed that the purchase transactions were bogus, the penalty was struck down because the Assessing Officer (AO) had levied it on the charge of “concealing the particulars of income,” instead of the correct charge of “furnishing inaccurate particulars of in...