Case Law Analysis
|Income Tax Appellate Tribunal
Section 271AAB IT Act | Penalty Rate Must Be Proportionate to Assessee’s Cooperation, Not Automatically Maximum : ITAT Mumbai
ITAT Mumbai rules that imposing a 90% penalty under Section 271AAB without demonstrating extraordinary circumstances is arbitrary. The Tribunal mandates a minimum 30% penalty where undisclosed income is admitted and declared, ensuring proportionality in tax penalties.