Summary
- The Income Tax Appellate Tribunal, Delhi has deleted a ₹14.96 lakh penalty imposed under Section 271DA against Sanjay Kalsi for alleged cash transaction violations.
- The case arose from an Excel sheet found during a search, indicating cash payments exceeding ₹2 lakh, which Kalsi disputed as unsubstantiated.
- The Tribunal accepted Kalsi's explanation that tax was paid merely to avoid litigation, noting the Assessing Officer had previously dropped related penalty proceedings under Section 270A.
- This ruling underscores the importance of evidentiary standards in tax cases and may influence future assessments involving electronic records.
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