https://www.taxtmi.com/caselaws?id=456266 ITAT Mumbai quashed penalty imposed u/s 271(1)(c) against assessee. Court held penalty notice was defective as AO failed to strike off irrelevant charges, demonstrating non-application of mind and rendering order void ab initio. Assessee had voluntarily disallowed expenditure in P&L account following s.148 notice, which AO accepted without making additions during reassessment. Revenue failed to disprove genuineness of expenses claimed for payments to third party with concrete evidence. Court concluded no valid penalty could be imposed when assessee proactively disallowed disputed expenses to avoid litigation and AO accepted the revised return. Appeal decided against revenue. en-us Fri, 16 Mar 2018 00:00:00 +0530 Thu, 11 Jul 2024 21:59:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456266 ITAT Mumbai quashed penalty imposed u/s 271(1)(c) against assessee. Court held penalty notice was defective as AO failed to strike off irrelevant charges, demonstrating non-application of mind and rendering order void ab initio. Assessee had voluntarily disallowed expenditure in P&L account following s.148 notice, which AO accepted without making additions during reassessment. Revenue failed to disprove genuineness of expenses claimed for payments to third party with concrete evidence. Court concluded no valid penalty could be imposed when assessee proactively disallowed disputed expenses to avoid litigation and AO accepted the revised return. Appeal decided against revenue. Case-Laws Income Tax Fri, 16 Mar 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456266