Section 271D Penalty Cannot Survive After Reassessment Itself is Quashed: Mumbai ITAT

Premji Bhurlal Gala Vs ACIT (ITAT Mumbai) Section 271D Penalty Cannot Survive After Reassessment Itself is Quashed- Mumbai ITAT Deletes ₹1.35 Crore Penalty Based on Alleged Cash Loans The Mumbai ITAT deleted penalties levied u/s 271D aggregating to ₹1.35 crore, holding that once the very reassessment proceedings and consequential additions were quashed as void ab initio, the penalty proceedings initiated on the basis of those reassessment orders could not independently survive. The Revenue alleged that the assessee had accepted cash loans from M/s Evergreen Enterprises based on seized code...