Appeal allowed by ITAT Delhi, penalty under Income Tax Act deleted.

The Appellate Tribunal ITAT DELHI ruled in favor of the assessee, allowing the appeal and directing the assessing officer to delete the penalty levied u/s 271(1)(c) of the Income Tax Act, 1961. The Tribunal found that the penalty was unjustified as it was based on an addition made on an estimate basis without clear proof of concealment of income or furnishing inaccurate particulars.

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Issues Involved:
The judgment involves a dispute regarding the levy of penalty u/s 271(1)(c) of the Income Tax Act, 1961 based on an addition made on an estimate basis.

Issue 1: Levy of Penalty u/s 271(1)(c) of the Act

The assessee filed an appeal against the order passed by the Commissioner of Income Tax (Appeals) for Assessment Year 2014-15, where a penalty of Rs. 1,71,411 was levied by the assessing officer u/s 271(1)(c) of the Act. The assessee contended that the penalty was unjustified as it was based on an addition made on an estimate basis. The Tribunal found that the addition was indeed made on an estimate basis without clear proof of concealment of income or furnishing inaccurate particulars. Therefore, the Tribunal directed the assessing officer to delete the penalty, ruling in favor of the assessee.

Conclusion:
The Appellate Tribunal ITAT DELHI ruled in favor of the assessee, allowing the appeal and directing the assessing officer to delete the penalty levied u/s 271(1)(c) of the Income Tax Act, 1961.

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