AS TRADING COMPANY,GHAZIABAD vs. INCOME TAX OFFICER, GHAZIABAD

ITA 6928/DEL/2025Status: DisposedITAT Delhi25 May 2026AY 2019-203 pages
AI SummaryAllowed

What were the facts?

The assessee's appeal concerns an ex-parte order by the CIT(A) and a penalty of Rs. 4,35,343/- imposed under Section 270A for alleged under-reporting of income. The addition was made on an estimated basis by applying a 5% net profit rate.

What did the Tribunal hold?

The Tribunal held that the penalty for under-reporting of income, computed on an estimated basis, is not justified. It noted that the AO did not specify the clause of Section 270A(2) and failed to discuss how the case was not covered by Section 270A(6) regarding estimated income.

What were the issues?

Whether penalty under Section 270A is sustainable when income is estimated and whether the order was passed in contravention of natural justice principles.

Which sections of the Income-tax Act were involved?

Section 270A,Section 270AA,Section 274(2),Section 144,Section 147,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHIBENCH ‘B’, NEW DELHI

Before: Sh. Challa Nagendra Prasad & Smt. Renu Jauhri

Hearing: 13.04.2026Pronounced: 25.05.2026

Per Renu Jauhri, Accountant Member:

The above captioned appeal is preferred by the assessee against the order dated 18.08.2025, passed by CIT(A)/NFAC u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for A.Y. 2019-20. 2. The assessee has raised following grounds of appeal: “1.1 That on the facts and circumstances of the case, the Lei. CIT(A) was not justified in deciding the appeal ex-parte without affording proper and reasonable opportunity of being heard.

1.

2 That the impugned order has been passed in contravention of principles of natural justice and same Is illegal and bad in law.

2.

1 That on the facts and circumstances of the

The order continues below.

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