https://www.taxtmi.com/caselaws?id=794522 Penalty under section 270A was stated to be unsustainable where the assessment addition arose from rejection of books under section 145(3) and estimation of income. The Tribunal's reasoning was that an estimated addition does not provide a stable basis for levying penalty for under-reporting, so the assessee's challenge on this ground succeeded. The alternative plea on immunity became academic once the primary ground was accepted. The document therefore states the principle that penalty under section 270A should not be sustained on an income addition founded purely on estimation. en-us Mon, 29 Jun 2026 00:00:00 +0530 Tue, 07 Jul 2026 08:39:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794522 Penalty under section 270A was stated to be unsustainable where the assessment addition arose from rejection of books under section 145(3) and estimation of income. The Tribunal's reasoning was that an estimated addition does not provide a stable basis for levying penalty for under-reporting, so the assessee's challenge on this ground succeeded. The alternative plea on immunity became academic once the primary ground was accepted. The document therefore states the principle that penalty under section 270A should not be sustained on an income addition founded purely on estimation. Case-Laws Income Tax Mon, 29 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794522