ITAT Deletes Penalty as Both Limbs of Section 271(1)(c) Invoked Together

Kantibhai Tulshibhai Bhadani Vs ITO (ITAT Surat) The appeal before the Income Tax Appellate Tribunal (ITAT), Surat arose from an order of the Commissioner of Income Tax (Appeals) confirming a penalty of ₹18,41,949 imposed under Section 271(1)(c) of the Income Tax Act for Assessment Year 2014–15. The assessee had originally filed a return declaring income of ₹2,97,370. However, the assessment under Section 143(3) resulted in a total income of ₹91,91,500 after an addition of ₹89,14,121 relating to disallowance of Long Term Capital Gain. Subsequently, penalty proceedings were initiated ...