ITAT Delhi Quashes Section 270A Penalty on Estimated Income Addition

Ram Lakhan Vs DCIT (ITAT Delhi)

The Income Tax Appellate Tribunal (ITAT) in Delhi recently heard an appeal from Ram Lakhan, a transporter who had a penalty levied against him by the Deputy Commissioner of Income Tax (DCIT) for the Assessment Year 2017-18. The penalty of Rs. 15,601 was imposed under Section 270A of the Income Tax Act, 1961, and was based on an estimated addition of Rs. 1,17,000 to his income. This addition was calculated on the assumption that he operated 13 tempos, while he claimed to own only 10.

Ram Lakhan’s counsel argued that a penalty cannot be levied

Please become a Premium member. If you are already a Premium member, login here to access the full content.