https://www.taxtmi.com/highlights?id=81264 The Income Tax Appellate Tribunal (ITAT) held that no penalty u/s 271(1)(c) can be imposed for an ad-hoc disallowance of 20% of expenses made by the Assessing Officer. The ITAT relied on the Supreme Court's decision in CIT vs. Reliance Petro Products (P) Ltd., which stated that merely making an unsustainable claim, without any inaccuracy in furnishing particulars of income, does not attract penalty. The ITAT cited various High Court decisions, including CIT vs. Ajaib Singh and Co., Naranbhai Veerabhai and Co., and Addl. CIT vs. Delhi Cloth and General Mills Co. Ltd., which held that no concealment penalty can be imposed for disallowance of expenses on an estimated basis. Since the major amount was already deleted by the CIT(A)/NFAC, and the..... en-us Thu, 12 Sep 2024 07:57:41 +0530 Thu, 12 Sep 2024 07:57:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=81264 The Income Tax Appellate Tribunal (ITAT) held that no penalty u/s 271(1)(c) can be imposed for an ad-hoc disallowance of 20% of expenses made by the Assessing Officer. The ITAT relied on the Supreme Court's decision in CIT vs. Reliance Petro Products (P) Ltd., which stated that merely making an unsustainable claim, without any inaccuracy in furnishing particulars of income, does not attract penalty. The ITAT cited various High Court decisions, including CIT vs. Ajaib Singh and Co., Naranbhai Veerabhai and Co., and Addl. CIT vs. Delhi Cloth and General Mills Co. Ltd., which held that no concealment penalty can be imposed for disallowance of expenses on an estimated basis. Since the major amount was already deleted by the CIT(A)/NFAC, and the..... Highlights Income Tax Thu, 12 Sep 2024 07:57:41 +0530 https://www.taxtmi.com/highlights?id=81264