ITAT Deletes Penalty Since Section 68 Addition Was Mostly Deleted: ITAT Delhi

Raj Kumar Kapoor Vs Assessment Unit (ITAT Delhi) The Tribunal allowed the assessee’s appeal and deleted the penalty of Rs. 4,99,210 imposed under Section 271(1)(c) of the Income Tax Act for alleged concealment relating to cash deposits treated as unexplained credits under Section 68. The Assessing Officer had originally added Rs. 22,17,700 to the assessee’s income and levied penalty equal to 100% of the addition. The NFAC had confirmed the penalty ex-parte due to non-submission of explanations by the assessee. However, during the quantum proceedings, the Tribunal had earlier held that the ...