No levy of penalty on estimated addition on ad hoc disallowance of expenses: ITAT Delhi

C&C Construction Ltd Vs CIT (Appeals) (ITAT Delhi) ITAT Delhi held that the law is very well settled that there cannot be any levy of penalty on an estimated addition on ad hoc disallowances of expenses. Accordingly, penalty proceedings initiated under section 271(1)(c) of the Income Tax Act quashed. Facts- The issue to be decided in this appeal is as to whether CIT(A) was justified in upholding the ad hoc disallowance of 10% out of repairs and maintenance expenses of plant and machinery, travelling and conveyance expenses, telephone expenses, repairs and maintenance of vehicles and securi...