https://www.taxtmi.com/caselaws?id=420498 The ITAT set aside the penalty imposed under Sec. 271(1)(c) for unexplained cash credits under Sec. 68 of the Income-tax Act, 1961. The ITAT found that the Assessing Officer did not specify the default for initiating the penalty proceedings or clearly state the basis for imposing the penalty. Despite agreeing with the addition of cash credits as unexplained, the ITAT emphasized that the mere production of income tax returns of the lenders was insufficient to justify the penalty. Therefore, the ITAT quashed the penalty and allowed the appeal, highlighting the inadequacies in the penalty proceedings. en-us Wed, 30 Mar 2022 00:00:00 +0530 Mon, 04 Apr 2022 09:14:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=420498 The ITAT set aside the penalty imposed under Sec. 271(1)(c) for unexplained cash credits under Sec. 68 of the Income-tax Act, 1961. The ITAT found that the Assessing Officer did not specify the default for initiating the penalty proceedings or clearly state the basis for imposing the penalty. Despite agreeing with the addition of cash credits as unexplained, the ITAT emphasized that the mere production of income tax returns of the lenders was insufficient to justify the penalty. Therefore, the ITAT quashed the penalty and allowed the appeal, highlighting the inadequacies in the penalty proceedings. Case-Laws Income Tax Wed, 30 Mar 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=420498