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Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN
Before: Shri Satbeer Singh Godara & Shri Amarjit Singh
O R D E R Per Bench This assessee’s appeal for A.Y. 2017-18 arises against the National Faceless Appeal Centre, Delhi [CIT(A)]’s DIN & Order No. ITBA/ NFAC/S/250/2022- 23/1051690790(1) dated 30.013.2023 in proceedings u/s. 250 of the Income Tax Act, 1961 (the Act).
Case called twice. None appears at assessee’s behest. We accordingly proceed exparte against the assessee.
It emerges at the outset with the able assistance coming from both the parties that the CIT(A)/NFAC has passed exparte order confirming the Assessing Officer’s action levying sec.270A penalty of Rs.4,64,494/- pertaining to the quantum addition of Rs.9,02,050/- [comprising of specified bank notes and estimated turnover @ 12%]
Smt. Swarnalatha could hardly dispute the clinching fact that the impugned quantum addition is itself based on estimation only and therefore, it deserves to be treated as the assessee’s bonafide mistake only u/s.270A(6)(a) of the Act which has itself excluded from the purview of “under-reporting of income” by the legislature. We accordingly delete the impugned penalty in very terms.
This assessee’s appeal is allowed in above terms.