SUN DIAM,SURAT vs. ITO 2(3)(6), SURAT, SURAT

ITA 1112/SRT/2025Status: DisposedITAT Surat27 February 2026AY 2013-14Bench: Shri Sanjay Garg (Judicial Member), Shri Narendra Prasad Sinha (Accountant Member)6 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the additions on which the penalty was levied were purely estimated additions. Following its own previous decisions in the cases of the assessee's sister concerns, the Tribunal found that penalty under section 271(1)(c) cannot be levied on estimated additions. Therefore, the impugned penalty was ordered to be deleted.

What were the facts?

The assessee is in appeal against the order of the CIT(A) confirming penalty under section 271(1)(c). The penalty was levied on additions made on an estimation basis after a search proceeding. The assessee argued that penalty cannot be levied on estimated additions, citing previous Tribunal orders in similar cases of its sister concerns.

What were the issues?

Whether penalty under section 271(1)(c) can be levied on additions made on estimation basis.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT ‘SMC’ BENCH, SURAT

Before: Shri Sanjay Garg & Shri Narendra Prasad Sinha

Consolidated Appeals (2)

ITA 1110/SRT/2025AY 2011-12
ITA 1111/SRT/2025AY 2012-13
For Appellant: Shri Himanshu Gandhi, CA
For Respondent: Shri Ajay Uke, Sr.DR
Hearing: 08/12/2025Pronounced: 27/02/2026

Per Sanjay Garg, Judicial Member:

The captioned six appeals

The order continues below.

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