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2009 (11) TMI 891 - PUNJAB & HARYANA HIGH COURTPenalty u/s 271(1)(c) - unaccounted rice bran and under-valuation of closing stock of rice bran - As per ITAT additions are based on the estimation when the same is on the basis of the concrete evidence in the form of documents found during the course of survey operation - HELD THAT:- ITAT has recorded a finding of fact with regard to the addition of income being made on the basis of estimate, which in our opinion does not require any interference. A perusal of the order passed by the ITAT in the assessment proceedings which has been quoted in extenso in the impugned order, makes it clear that addition of the income was made only on the basis of estimate. Therefore, we do not find that the learned ITAT has recorded a wrong finding in this regard. As far as the finding with regard to concealment of income is concerned, it is clear that in the original assessment order, there was no finding that the assessee has concealed its income and furnished inaccurate particulars of income, but subsequently after the cancellation of the assessment, AO has proceeded on the basis that the assessee, while inflating the electricity charges and under-valuing the closing stock of rice bran, has suppressed the income. Therefore, the additions on account of processing of unaccounted rice bran and under-valuation of closing stock of rice bran were made and income was assessed on the estimate base. Therefore, in our opinion, the ITAT is right while coming to the conclusion that when the assessment is made on estimate basis, the penalty should not be imposed. In this regard, reference can be made to a decision in Harigopal Singh [2002 (8) TMI 65 - PUNJAB AND HARYANA HIGH COURT]. No substantial question of law
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