No 270A Penalty Where Income Is Based on Gross Profit Estimation: ITAT Ranchi

Eklavya Estate Pvt. Ltd. Vs DCIT (ITAT Ranchi) The ITAT, Ranchi Bench, held that penalty u/s 270A is not leviable where income is determined purely on estimation basis. In this case (AY 2018-19), following a survey u/s 133A, the AO found no books and estimated income @ 10% of gross receipts, and thereafter levied penalty u/s 270A for alleged under-reporting. The CIT(A) confirmed the penalty. The Tribunal noted that the quantum addition itself was an estimate, with no specific finding of concealment or misreporting. It relied on s.270A(6), which expressly excludes estimated additions from “un...