No Penalty under Section 271(1)(c) for Additions Based on Estimates

Sushila Goyal Vs ITO (ITAT Delhi) In the case of Sushila Goyal Vs Income Tax Officer (ITO), the Income Tax Appellate Tribunal (ITAT) Delhi had to decide on the contentious issue of levying penalties under Section 271(1)(c) of the Income Tax Act, 1961, when additions to income are made on an estimated basis. The outcome of this case gives much-needed clarity on the application of penalties related to tax evasion and incorrect income disclosures. Analysis : Sushila Goyal, the appellant, filed an appeal against the penalty imposed under Section 271(1)(c) of the Income Tax Act, amounting to Rs.1,...