ITAT Kolkata Quashes Section 271(1)(c) Penalty on One-Time Settlement

Kushal Sengupta Vs ITO (ITAT Kolkata) ITAT Kolkata allowed the assessee’s appeal and deleted ₹5.28 lakh penalty under Section 271(1)(c), holding that the one-time settlement received from Kotak Mahindra Life Insurance was a capital receipt and fully disclosed in the return. The Income Tax Appellate Tribunal (ITAT), Kolkata Bench, has quashed a penalty of ₹5,28,234 levied under Section 271(1)(c) of the Income-tax Act, 1961, against Kushal Sengupta for the Assessment Year 2006-07. The penalty was imposed by the Assessing Officer (AO) and upheld by the National Faceless Appeal Centre (NFAC...