No Section 271(1)(c) Penally on additions on estimated basis: ITAT Ahmedabad

I-Serve Systems Pvt. Ltd. Vs DCIT (ITAT Ahmedabad) Income Tax Appellate Tribunal (ITAT) Ahmedabad has allowed the appeal of I-Serve Systems Pvt. Ltd., cancelling a penalty of ₹8.26 lakhs imposed under Section 271(1)(c) of the Income Tax Act. The penalty was sustained earlier by the CIT(A), but ITAT held that it was unjustified since it arose from estimated disallowances made by the Assessing Officer (AO). The AO had completed the assessment ex-parte under Section 144 after the assessee failed to respond to multiple notices. During the assessment, 25% of expenses amounting to ₹69.23 lakhs w...