Disallowance in Unabated Assessment Without Incriminating Material: ITAT Upholds Deletion of ₹16.29 Lakh Penalty u/s 271(1)(c)

The ITAT (Income Tax Appellate Tribunal) has upheld the deletion of a penalty in an "unabated assessment without incriminating material." An unabated assessment is one that continues without the support of new, incriminating evidence. The tribunal found that the tax authorities imposed a penalty without any new, concrete material to suggest an intention to evade tax. This decision reinforces the principle that reassessment or penalty cannot be based on mere suspicion or a change of opinion, thereby protecting taxpayers from arbitrary actions.