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2016 (4) TMI 1225 - ITAT INDORERejection of books - net profit application @4 % on total receipt of transportation charges - Penalty u/s 271(1)(c) - Held that:- We find that the similar issue had come up before the Jurisdicitonal High Court in the case of CIT vs. Shivnarayan Jamnalal [1996 (5) TMI 9 - MADHYA PRADESH High Court] wherein held that the books of accounts maintained by the assessee were not properly maintained and if assessee has not concealed any material and not tried to defraud the authorities, the penalty cannot be levied, because the income was assessed on estimate basis. In that case, the assessee had nine liquor shops located in several places maintained a single cash book and ledger. The AO held that it was not possible to acquire daily account from all the shops regularly at a particular place and that the sales of all these shops were recorded at a stretch. He, therefore, estimated the sales and net profit, in which the Tribunal has cancelled the penalty and Hon'ble High Court has confirmed the order of the Tribunal. We find that in the instant case on hand in the year under consideration the books of accounts were rejected and net profit was applied. Therefore, we are of the view that facts of this case is similar to the facts of the Jurisdictional High Court. Therefore, the penalty cannot be imposed. - Decided in favour of assessee.
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