ITAT Deletes Penalty for Estimation-Based Addition (Section 271A)

Mohammed Rahimuddin Vs ITO (ITAT Hyderabad)

This article examines the case of Mohammed Rahimuddin Vs Income Tax Officer (ITO) as ruled by the Income Tax Appellate Tribunal (ITAT) in Hyderabad. The case focuses on the validity of the penalty levied under section 271A of the Income Tax Act, 1961 due to an estimation-based addition of income.

The tribunal delved into the question of whether an estimation-based addition of income would warrant an automatic penalty under section 270A of the Act

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