Penalty for Wrong Income Claim Set Aside Due to Reliance on Audit Report

Kissan Petro Oils Private Limited Vs DCIT (ITAT Delhi) Income Tax Appellate Tribunal (ITAT) Delhi Bench has set aside a penalty imposed under Section 271(1)(c) of the Income Tax Act, 1961, on Kissan Petro Oils Private Limited for Assessment Year 2015-16. The Tribunal’s decision was primarily based on two grounds: the deletion of all underlying additions by a previous ITAT order and the fact that the assessee’s claims were supported by a Chartered Accountant-certified audit report. Kissan Petro Oils, engaged in manufacturing and selling methyl ester, filed its return declaring a los...