Is penalty u/s 271(1)(c) sustainable when the AO has rejected book results and adopted a higher profit ratio on estimate basis?

Last updated: 11 August 2021
Quick Summary
The Income Tax Appellate Tribunal (ITAT) Delhi has ruled on a penalty imposed under Section 271(1)(c) of the IT Act. The Assessing Officer (AO) had rejected the assessee's book results and made an addition to income by estimating profit at 14.5% on sales, which the assessee had agreed to for estimation purposes. The ITAT allowed the appeal, finding the penalty unsustainable in this scenario.

Court :
ITAT Delhi

Brief :
This appeal filed by the assessee is directed against the order dated 31st January, 2018 of the CIT(A), Ghaziabad, relating to assessment year 2013-14.

Citation :
ITA No.2059/Del/2018

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Poojitha Raam Vinay
Published in Income Tax
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