Section 271(1)(c) penalty unjustified on estimated addition to income

Little Star Commodities Pvt. Limited Vs ITO (ITAT Kolkata) The Income Tax Appellate Tribunal (ITAT) of Kolkata dealt with an appeal filed by Little Star Commodities Pvt. Ltd. against a penalty imposed under Section 271(1)(c) of the Income Tax Act for the assessment year 2012-13. The penalty of Rs. 1,99,911 was levied following a dispute over the assessee’s declared commission income. Initially, the company disclosed Rs. 1,34,000 as commission income, calculated at a 0.05% commission rate for providing accommodation entries. However, the Assessing Officer (AO) deemed this rate too low and...