No Penalty for Estimated Profit-Based Addition

Kamlesh Gupta Vs DCIT (ITAT Delhi) In a landmark ruling, the Income Tax Appellate Tribunal (ITAT), Delhi, in the case of Kamlesh Gupta Vs DCIT, held that an addition made on the account of estimated profit applied to turnover does not constitute concealment. Therefore, no penalty should be imposed. The decision is likely to have significant implications for businesses, particularly in cases where profit estimation methods are used. The case revolved around the assessment years from 2009 to 2015, where the appellant, Kamlesh Gupta, contested the penalties imposed by the Assessing Officer (AO) u...