Section 271(1)(c) Penalty Deleted as Section 14A Disallowance Alone Is Not Enough: ITAT Mumbai

Rikhabchand Vachraj Mehta Vs ITO (ITAT Mumbai) Penalty u/s 271(1)(c) quashed for want of satisfaction and vague charge – Section 14A disallowance The Mumbai ITAT allowed the assessee’s appeal and deleted penalty of ₹22,563 levied under section 271(1)(c) for AY 2012-13 in relation to a disallowance made under section 14A read with Rule 8D. The Tribunal noted that no satisfaction for initiation of penalty proceedings was recorded in the assessment order passed under section 143(3). On this ground alone, the penalty proceedings were held to be invalid. Further, the Tribunal observed that th...