Section 271(1)(c) Penalty Fails When AO Accepts Reopened Return

Smt. Himani Goyal Sharma Vs DCIT (ITAT Amritsar) Return witdarwing the claim in the orininal return- No Penalty Where Income Declared in Reassessment Is Accepted: The Amritsar Bench of the ITAT allowed the assessee’s appeals for AYs 2011-12 to 2015-16 and deleted penalties levied under section 271(1)(c), which had been partially sustained by the CIT(A). The Tribunal noted that although the assessments were reopened, the assessee filed returns in response to the notices declaring correct income by withdrawing inadmissible claims (Chapter VIA deduction, house property loss, etc.), and the Asse...