ITAT Directs AO to Revisit Penalty Proceedings After Completion of de novo assessment

ITAT directed the Assessing Officer (AO) to revisit penalty proceedings after the completion of a de novo (fresh) assessment. The tribunal reasoned that the outcome of the reassessment could impact the imposition and quantum of penalties. Therefore, it is appropriate to reconsider the penalty proceedings based on the findings of the fresh assessment. This ensures a fair and consistent approach to both assessment and penalty.