Topic
The ITAT Jaipur bench quashed penalty under Section 271(1)(c) after the assessee settled quantum dispute under the Direct Tax Vivad Se Vishwas Scheme 2020, holding that Section 5 grants immunity from penalty post-scheme settlement. This ruling clarifies that penalty proceedings cannot survive once a dispute is resolved under the DTVSV Act.
Estimated income additions cannot trigger penalties under Section 270A(9) of the Income-tax Act, even if the Assessing Officer alleges misreporting. This ruling affirms that statutory immunity for estimated adjustments overrides allegations of under-reporting, protecting traders and small businesses from punitive measures based on speculative profit calculations.
The ITAT Delhi has ruled that once a taxpayer files Form 68 seeking penalty immunity under Section 270AA, the tax officer cannot proceed with or finalize a penalty order until the immunity application is adjudicated. This establishes a mandatory procedural pause, protecting taxpayers from premature penal action and reinforcing statutory due process in income tax assessments.