Prolonged sterilisation of development rights supports capital-gains treatment, while business-income disallowances cannot govern capital-gains comput...
Additional evidence in transfer pricing dispute leads to fresh examination, while tax deductions, TDS credit, fee and refund interest require verifica...
Category II AIF pass-through taxation preserves non-business income character; investment receipts cannot be reclassified without applying recognised ...
Mutual fund maturity rules require proper rollover, redemption, disclosure, and due diligence; investor gains cannot excuse regulatory breaches or pen...
Threshold exemption excludes exempt services, while stamp-paper purchases avoid reverse charge; consequential service tax penalties were also set asid...
The ITAT held that the penalty under section 271D was barred by limitation as it was imposed after the prescribed deadline of 28.02.2023, with the order dated 29.03.2023 being invalid. Additionally, the reopening of assessment was quashed due to improper approval under section 151, rendering the reassessment proceedings void ab initio. Consequently, penalty proceedings under section 271D could not be sustained in the absence of a valid assessment order. The Tribunal relied on precedents confirming that penalty action does not survive when the assessment itself is invalid. Therefore, the penalty levied under section 271D and the reassessment proceedings were set aside, and the appeal of the assessee was allowed.
The ITAT held that the penalty under section 271D was barred by limitation as it was imposed after the prescribed deadline of 28.02.2023, with the order dated 29.03.2023 being invalid. Additionally, the reopening of assessment was quashed due to improper approval under section 151, rendering the reassessment proceedings void ab initio. Consequently, penalty proceedings under section 271D could not be sustained in the absence of a valid assessment order. The Tribunal relied on precedents confirming that penalty action does not survive when the assessment itself is invalid. Therefore, the penalty levied under section 271D and the reassessment proceedings were set aside, and the appeal of the assessee was allowed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4805
Join Channel
TaxTMI 
