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2012 (4) TMI 606 - ITAT CHANDIGARHLevy of penalty u/s 271(1)(c) - addition made on the foundation of estimated high NP rate of 12% as against shown by the assessee at 10% - Held that:- A bare reading to the provisions of section 271(1) (c) of the Act exclude cases like that the present one from its purview. Therefore, there is hardly any need to seek support of judicial verdicts, in such cases. The case laws relied upon by the assessee have been rejected by the CIT(A), in a single stroke, without demonstrating how the same are not applicable to the facts of the assessee’s case. However, it is pertinent to mention here that the Revenue Authorities failed, to bring on record any judicial verdict, to support their conclusion. In view of the above facts, it is pertinent to refer to the decision of the jurisdictional High Court, in the case of Harigopal Singh vs CIT (2002 (8) TMI 65 - PUNJAB AND HARYANA High Court) whereby it has been categorically held that penalty cannot be levied when income has been estimated. Having regard to the above legal and factual discussion, the order of CIT(A), upholding the levy of penalty, is set aside. Thus, the appeal of the assessee is allowed.
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