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Informative

ITAT Deletes Penalty u/s 271D: Penalty Held Invalid as Section 153C Assessment Quashed due to Lack of Incriminating Material

Update / Judgement Date

27 Feb 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Appeal Against OrderIncome Tax

The ITAT has deleted a penalty under Section 271D, holding the penalty invalid as the Section 143(3) assessment was quashed due to lack of incriminating material. This decision highlights the importance of valid assessments for penalties. It ensures that penalties are not imposed arbitrarily. This ruling underscores the need for clear evidence in penalty cases. It emphasizes the importance of fair assessments. The ITAT's order protects the rights of taxpayers.