Penalty u/s 271(1)(c) Not Sustainable on Estimated/40(a)(ia)/41(1) Additions: ITAT Agra

Tomar & Brothers Vs ITO (ITAT Agra) Penalty u/s 271(1)(c) Not Sustainable on Estimated Disallowances, 40(a)(ia) and 41(1) Additions – ITAT Agra Deletes Entire Penalty The Agra Bench of the ITAT allowed the assessee’s appeal and deleted the entire penalty levied under section 271(1)(c) for AY 2014-15. The penalty related to three additions: (i) ad-hoc disallowance of expenditure based on estimation, (ii) disallowance under section 40(a)(ia), and (iii) addition of sundry creditors/debtors treated under section 41(1). The Tribunal held that no penalty can be levied where income or expendi...