No Penalty can be Imposed u/s 271(1)(c) When Income Addition is based on Estimation: ITAT [Read Order]

The ITAT, relying on decisions including ITO vs. Bombaywala Readymade Stores and Thakorbhai & Company vs. ITO, held that penalty under Section 271(1)(c) cannot be levied in cases of estimated income
By Sneha Sukumaran Mullakkal - On March 13, 2025 2:43 pm - 2 mins read
No Penalty - Income Tax Addition - Income - taxscan

The Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT ) uled that no penalty can be imposed under Section 271(1)(c) of Income Tax Act,1961 when income addition is based on estimation. Maruti Infrastructure Ltd, appellant-assessee,engaged in real estate development and construction, filed its return of income for AY 2013-14 on September 21, 2013, declaring…

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