Taxpayer Wins: Income Estimation by Assessing Officer Doesn't Automatically Trigger Penalty, Tribunal Provides Relief Under Sections 270A and 272A

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....ITAT held that the income estimation by AO did not warrant penalty under section 270A(1) as the books of accounts were not rejected. The estimation was saved by exception under section 270A(6), and no specific misreporting was established. Additionally, penalty under section 272A(1)(d) for non-compliance with notice was deleted, as the default was neither intentional nor deliberate, and the assessee subsequently participated in assessment proceedings. The tribunal directed complete deletion of penalties levied, finding them unsustainable in law.....