ITAT Delhi Deletes Penalty – No Penalty Sustainable on Estimated Income

Manish Chawla Vs Additional/Joint/Deputy/ACIT/ITO (ITAT Delhi) Delhi ITAT deleted penalty levied u/s 271(1)(c), holding that penalty cannot be sustained on income assessed purely on estimation. Assessee, engaged in commission business, filed return declaring income of ₹1,87,132/- u/s 44AD on turnover of ₹22.5 lakh. AO, relying on Form 26AS, noticed total commission receipts of ₹38 lakh & held that Assessee had concealed income. AO made addition of ₹36,12,868/- & levied penalty of ₹4,29,510/- u/s 271(1)(c). In appeal, CIT(A) restricted addition to 25% of commission income &...