https://www.taxtmi.com/caselaws?id=380272 Penalty under section 158BFA(2) is discretionary and cannot be imposed automatically where the undisclosed income addition is sustained only on a lump-sum estimate. The analysis notes that the provision for penalty is distinct from the interest element and must be applied reasonably on the facts of the case. Where the record does not conclusively establish concealed income to the higher standard required for penalty, an estimated quantum addition alone is insufficient to justify penal action. On that basis, the penalty was held unsustainable and was cancelled in favour of the assessee. en-us Wed, 15 May 2019 00:00:00 +0530 Fri, 17 May 2019 10:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=380272 Penalty under section 158BFA(2) is discretionary and cannot be imposed automatically where the undisclosed income addition is sustained only on a lump-sum estimate. The analysis notes that the provision for penalty is distinct from the interest element and must be applied reasonably on the facts of the case. Where the record does not conclusively establish concealed income to the higher standard required for penalty, an estimated quantum addition alone is insufficient to justify penal action. On that basis, the penalty was held unsustainable and was cancelled in favour of the assessee. Case-Laws Income Tax Wed, 15 May 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=380272