ITAT quashes Section 271(1)(c) penalty on estimated 24.50% NP rate addition

AKM Resorts Vs ACIT (ITAT Chandigarh) ITAT Quashes Section 271(1)(c) Penalty on Addition made applying NP rate of 24.50% while the books of account were rejected Summary: In the case of AKM Resorts vs ACIT, the Income Tax Appellate Tribunal (ITAT) Chandigarh addressed the issue of penalties imposed under Section 271(1)(c) of the Income Tax Act. The Assessing Officer (AO) had rejected the books of accounts of AKM Resorts and estimated a Net Profit (NP) rate of 24.50%, resulting in an addition of ₹5,25,346 to taxable income. Subsequently, a penalty of ₹1,62,330 was imposed, alleging concealm...