Summary
- The ITAT Delhi has cancelled a penalty under Section 271AAB of the Income-tax Act for the Assessment Year 2016-17 due to defective show-cause notices.
- The Tribunal ruled that the Assessing Officer failed to specify which clause of Section 271AAB was invoked, undermining the validity of the penalty proceedings.
- This decision aligns with the Madras High Court's ruling in PCIT v. R. Elangovan, emphasizing procedural requirements in penalty notices.
- The outcome raises questions about future penalties where statutory clauses are not clearly identified, potentially impacting similar cases nationwide.
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