Section 271E Penalty Fails When Entity No Longer Exists

Nilons Enterprises Pvt. Ltd. Vs JCIT (ITAT Pune) Penalty on a Ghost Company Quashed: ITAT Pune Strikes Down 271E Order Post-Merger In Nilons Enterprises Pvt. Ltd. vs. JCIT (ITA No.1267/PUN/2025, AY 2016-17; order dated 29-12-2025), the Pune Bench “A” of the ITAT quashed a penalty of ₹34.28 lakh levied u/s 271E on a non-existent amalgamating company. The penalty was imposed for alleged violation of section 269T on the ground that loans/deposits were repaid in cash and through journal entries. The facts revealed that Sanghavi Foods Pvt. Ltd. had amalgamated with Nilons Enterprises Pvt. Ltd...