Penalty not survive if Assessment Order held to be void ab initio

ACIT Vs Rameshbhai Jivrajbhai Desai (ITAT Ahmedabad)

During the course of assessment proceedings, the Assessing Officer initiated penalty proceedings under Section 271(1)(c) of the Act.

The Ld. AR submitted that the assessment order passed under Section 153A of the Act was held to be void ab initio and thus there is no addition in the Assessment Order which survives. Hence, the penalty also does not sustain.

uring the hearing, the Department has filed adjournment application which is rejected as the issue involved does not sustain once the assessment itself becomes void ab initio.

FULL TEXT OF THE ORDER OF ITAT AHMEDABAD

Please become a Premium member. If you are already a Premium member, login here to access the full content.