Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (4) TMI 846 - ITAT CHENNAIPenalty u/s 270A - under-reporting income - Addition of 20% of the expenditure on estimated basis - HELD THAT:- The assessee has submitted that all the details before the AO and also expenditure incurred by the assessee. AO, on estimated basis, disallowed an amount and no penalty can be levied under section 270A of the Act. AO has disallowed 20% of the expenditure claimed by the assessee. Disallowing the expenditure cannot be said that it is an under-reporting of the income. Assessee has filed all the details and not only that the Assessing Officer, on estimated basis disallowed the expenditure. Once, the disallowance made on estimated basis, no penalty can be levied. Therefore, the penalty levied by the AO and confirmed by the ld. CIT(A) is unsustainable and thus, the penalty levied u/s 270A of the Act is deleted. Appeal filed by the assessee is allowed.
|