A control system and method for controlling a multiple gear ratio automatic transmission in a powertrain for an automatic transmission having pressure activated friction torque elements to effect gear ratio upshifts. The friction torque elements are synchronously engaged and released during a torque phase of an upshift event as torque from a torque source is increased while allowing the off-going friction elements to slip, followed by an inertia phase during which torque from a torque source is modulated. A perceptible transmission output torque reduction during an upshift is avoided. Measured torque values are used during a torque phase of the upshift to correct an estimated oncoming friction element target torque so that transient torque disturbances at an oncoming clutch are avoided and torque transients at the output shaft are reduced.