Penalty Under 271(1)(c) Fails as Reopening Found Invalid: Madras HC

Devaraj Ramasamy Naidu Vs ACIT (Madras High Court) The Madras High Court has delivered a judgment affirming that income tax assessment and penalty proceedings cannot legally stand if the initial notice empowering such actions has been quashed. The ruling came in the case of Devaraj Ramasamy Naidu Vs. ACIT, where the court set aside an assessment order and a consequential penalty notice for the assessment year 2013-14. The petitioner, Devaraj Ramasamy Naidu, had challenged an assessment order dated June 20, 2024, passed under Section 147 read with Section 144B of the Income Tax Act, 1961, and a...