Assessee estimated the sales consideration of Rs 1 Lakh for building sold, which was estimated as Rs 32.70 Lakhs by AO, which got finally settled by means of appellate order at Rs 16.35 Lakhs. In such scenario, the Tribunal held that no penalty can be levied where the addition is based merely on estimates. (AY 2007-08)
Eagle Theatres v. ACIT (2018) 65 ITR 3 (Delhi)(Trib.)
S. 271(1)(c) : Penalty – Concealment –Estimate of income- sale of land along with building – agreement silent on consideration towards super structure – estimate made by assessee – such estimate increased by the AO and finally stood reduced to another amount by ITAT – Held, no penalty on such additions based on estimates.