ITAT Sets Aside Rs.1.25 Crore Penalty on UP State Bridge Corp, Orders Fresh Review Linked to Pending Quantum Appeal

ITAT sets aside ₹1.25 crore penalty on UP State Bridge Corp, linking it to a pending quantum appeal for fresh review. The Income Tax Appellate Tribunal (ITAT) has set aside a penalty of ₹1.25 crore imposed on the Uttar Pradesh State Bridge Corporation. The tribunal's decision was based on the fact that the penalty was linked to a pending "quantum appeal" (an appeal against the original tax assessment). The ITAT ruled that the penalty appeal should be re-examined only after the final adjudication of the quantum appeal, as the validity and extent of the penalty are directly contingent upon the outcome of the underlying tax demand.