https://www.taxtmi.com/caselaws?id=754867 The ITAT Mumbai quashed penalties imposed under sections 271D and 271E after the underlying reassessment proceedings under section 147 were declared void ab initio by a coordinate bench. The AO had alleged violations of sections 269SS and 269T regarding loan transactions conducted without account payee cheques or bank drafts. The CIT(A) upheld the penalty despite the quashed reassessment. Following the SC precedent in Jayalakshmi Rice Mills, the ITAT held that penalty proceedings cannot survive when the underlying reassessment order is annulled, ruling in favor of the assessee. en-us Fri, 28 Jun 2024 00:00:00 +0530 Mon, 01 Jul 2024 21:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754867 The ITAT Mumbai quashed penalties imposed under sections 271D and 271E after the underlying reassessment proceedings under section 147 were declared void ab initio by a coordinate bench. The AO had alleged violations of sections 269SS and 269T regarding loan transactions conducted without account payee cheques or bank drafts. The CIT(A) upheld the penalty despite the quashed reassessment. Following the SC precedent in Jayalakshmi Rice Mills, the ITAT held that penalty proceedings cannot survive when the underlying reassessment order is annulled, ruling in favor of the assessee. Case-Laws Income Tax Fri, 28 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754867