https://www.taxtmi.com/caselaws?id=67343 The Income-tax Appellate Tribunal (ITAT) canceled the penalty imposed by the Income-tax Appellate Commissioner (IAC) on the assessee for underestimation of income from country liquor and foreign liquor business. The ITAT held that the additions were based on estimates and not gross negligence by the assessee. It found no evidence of fraud or wilful neglect, emphasizing that penalty provisions apply only in cases of fraud or gross neglect, which were not proven. The ITAT allowed the appeal, citing lack of evidence of wrongdoing by the assessee and previous case law supporting the decision to cancel the penalty. en-us Fri, 27 Feb 1981 00:00:00 +0530 Thu, 10 Mar 2011 11:37:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=67343 The Income-tax Appellate Tribunal (ITAT) canceled the penalty imposed by the Income-tax Appellate Commissioner (IAC) on the assessee for underestimation of income from country liquor and foreign liquor business. The ITAT held that the additions were based on estimates and not gross negligence by the assessee. It found no evidence of fraud or wilful neglect, emphasizing that penalty provisions apply only in cases of fraud or gross neglect, which were not proven. The ITAT allowed the appeal, citing lack of evidence of wrongdoing by the assessee and previous case law supporting the decision to cancel the penalty. Case-Laws Income Tax Fri, 27 Feb 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=67343