Penalty U/s 271DA & 271E Invalid When Original Assessment Set Aside – ITAT Deletes Penalties

Valar and Co. Vs ITO (ITAT Chennai) Penalty U/s 271DA & 271E Invalid When Original Assessment Set Aside – ITAT Deletes Penalties The assessee, a civil contractor firm, filed its return for AY 2018-19 declaring income of ₹63.58 lakh. During scrutiny assessment u/s 143(3), the AO made additions and initiated penalty proceedings including u/s 271DA (violation of sec. 269ST for cash receipts) and u/s 271E (violation of sec. 269T). Consequently, penalties of ₹44.96 lakh u/s 271DA and ₹2 lakh u/s 271E were levied by NFAC and confirmed by the CIT(A). Subsequently, the original assessm...