ITAT sets aside Penalty u/s 271 (1)(c) as Demonstrates Sufficient Cause for 326 Day Delay in Quantum Appeal

The ITAT has set aside a penalty imposed under Section 271(1)(c) of the Income Tax Act, which deals with penalties for concealment of income or inaccuracies in tax returns. The tribunal found that the taxpayer demonstrated a sufficient cause for a 326-day delay in filing the quantum appeal and a one-day delay in the penalty appeal. The decision reflects the tribunal’s discretion to consider genuine reasons for delays and ensures that penalties are not imposed unfairly due to procedural issues.