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Judgment
PER SATBEER SINGH GODARA, JM
This assessee’s appeal for assessment year 2018-19, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2025-26/1077719653(1), dated 24.06.2025 involving proceedings under section 270A of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
2 It transpires during the course of hearing that the assessee/appellant is aggrieved against both the learned lower authorities’ respective findings in the Assessing Officer’s section 270A penalty order dated 15.09.2023 imposing penalty of Rs.21,15,008/- in its hands as upheld in the lower appellate discussion. That being the case, we notice at the outset that the impugned penalty involves quantum addition/disallowance made in the assessee’s assessment order to 1 % commission coming to Rs.30,55,661/- qua its alleged sales treated as bogus in nature; meaning thereby that the impugned penalty is very much based on estimation. Faced with this situation, we hereby quote section 270A(6) of the Act that the assessee’s explanation herein indeed carries the bonafide element which does not attract the impugned penalty provision since involving the detailed explanation supported by the facts on records. We thus direct the learned assessing authority to delete the impugned penalty in very terms.
This assessee’s appeal is allowed.