Section 270A penalty cannot be imposed on addition on the basis of estimation

Rajendra Sadashiv Patil Vs ACIT (ITAT Pune)

In this case expenses were disallowed on estimate basis. Penalty has been levied on these disallowance of estimated expenses. Section 270A of the Act provides for imposition of penalty for under-reporting and misreporting of income. Sub-section (2) enlists certain circumstances of under-reporting of income. Sub-section (3) deals with the determination of under-reported income, which, in our context, is by reducing the income returned by the assessee from the amount

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