https://www.taxtmi.com/caselaws?id=445904 ITAT Rajkot held that penalty u/s 271(1)(c) cannot be sustained when the underlying assessment order is invalid. The tribunal found that ACIT granted approval u/s 153D mechanically without application of mind on the same day, making the assessment u/s 153C r.w.s. 143(3) bad in law. Despite procedural non-compliance, assessee had accepted the assessment. Following Atlanta Electricals precedent, tribunal ruled that when quantum assessment itself is susceptible, penalty consequences are not justified. Assessment order annulled and penalty deleted in favor of assessee. en-us Wed, 08 Nov 2023 00:00:00 +0530 Tue, 21 Nov 2023 15:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445904 ITAT Rajkot held that penalty u/s 271(1)(c) cannot be sustained when the underlying assessment order is invalid. The tribunal found that ACIT granted approval u/s 153D mechanically without application of mind on the same day, making the assessment u/s 153C r.w.s. 143(3) bad in law. Despite procedural non-compliance, assessee had accepted the assessment. Following Atlanta Electricals precedent, tribunal ruled that when quantum assessment itself is susceptible, penalty consequences are not justified. Assessment order annulled and penalty deleted in favor of assessee. Case-Laws Income Tax Wed, 08 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445904