ITAT Agra Deletes Section 270A Penalty on Ad-hoc Disallowance Without Rejection of Books

Kishor Kumar Garg Vs ACIT (ITAT Agra) ITAT Agra Deletes Section 270A Penalty on Ad-hoc Disallowance Without Rejection of Books The Agra Bench of the ITAT allowed the assessee’s appeal and deleted the penalty levied under section 270A in respect of an ad-hoc disallowance of 10% made on repairs to machinery and compensation paid to employees for AY 2017-18. The Assessing Officer had imposed penalty alleging under-reporting and mis-reporting of income pursuant to a disallowance of ₹1.29 lakh, arising from estimated disallowances without rejecting the books of account. The Tribunal noted that ...