https://www.taxtmi.com/caselaws?id=756796 The ITAT Surat ruled in favor of the assessee regarding penalty under section 271(1)(c) for unsecured loan additions made under section 68. The court held that penalty proceedings are distinct from assessment proceedings, requiring fresh consideration of evidence. The AO failed to provide a copy of the alleged statement where the assessee purportedly admitted taking loan entries, violating natural justice principles. The assessee challenged giving such statement and claimed subsequent loan repayment, which the Department did not rebut. Without proper evidence and procedural compliance, the penalty levy was deemed unlawful and deleted. en-us Wed, 07 Aug 2024 00:00:00 +0530 Fri, 09 Aug 2024 08:56:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756796 The ITAT Surat ruled in favor of the assessee regarding penalty under section 271(1)(c) for unsecured loan additions made under section 68. The court held that penalty proceedings are distinct from assessment proceedings, requiring fresh consideration of evidence. The AO failed to provide a copy of the alleged statement where the assessee purportedly admitted taking loan entries, violating natural justice principles. The assessee challenged giving such statement and claimed subsequent loan repayment, which the Department did not rebut. Without proper evidence and procedural compliance, the penalty levy was deemed unlawful and deleted. Case-Laws Income Tax Wed, 07 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756796