Penalty U/s 270A Can’t Be Levied on Estimated Bogus Purchase Addition: ITAT

HomeDirect TaxPenalty U/s 270A Can’t Be Levied on Estimated Bogus Purchase Addition: ITAT

Penalty U/s 270A Can’t Be Levied on Estimated Bogus Purchase Addition: ITAT

Direct Tax

Published on

06/06/2026

By Mariya Paliwala

Penalty U/s 270A Can’t Be Levied on Estimated Bogus Purchase Addition: ITAT

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The Income Tax Appellate Tribunal (ITAT), Agra Bench, has held that a penalty under Section 270A cannot be sustained where the underlying addition to income is based purely on estimation. The bench of M. Balaganesh (Accountant Member) deleted a penalty of Rs. 1.10 lakh imposed on a trader after finding that the addition itself was…

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Mariya Paliwala https://www.jurishour.in/

Mariya is the Senior Editor at Juris Hour. She has 7+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started her career as a freelance tax reporter in the leading online legal news companies.

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Penalty U/s 270A Can’t Be Levied on Estimated Bogus Purchase Addition: ITAT

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