Section 271AAC Penalty not applicable if tax under section 115BBE is nil

Shri Vijay Kumar Reddy Vs ACIT (ITAT Hyderabad) ITAT), Hyderabad bench has issued an order pertaining to the application of penalties under section 271AAC of the Income Tax Act in the case of Shri Vijay Kumar Reddy Vs ACIT. The Tribunal asserted that penalty under this section is not applicable if the tax under section 115BBE of the Act is nil. The case necessitates readjudication, bearing implications for the enforcement of penalties for undisclosed income. The ITAT bench pointed out that the penalty imposed under section 271AAC is predicated on the tax payable under section 115BBE. The appel...