ITAT Surat Deletes Section 271(1)(c) Penalty on Estimated Income Addition

Gunjan Agarwal Vs ITO (ITAT Surat) Income Tax Appellate Tribunal (ITAT) Surat bench has deleted a penalty of Rs. 1,53,834/- imposed under Section 271(1)(c) of the Income Tax Act, 1961, on Gunjan Agarwal for the Assessment Year 2008-09. The Tribunal’s decision was based on the principle that a penalty for concealment of income or furnishing inaccurate particulars cannot be sustained when the underlying income addition is made purely on an estimated basis. The assessee had challenged the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, which...