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2014 (6) TMI 937 - AT - Income TaxPenalty u/s 271(1)(c) - bogus expenditure - CIT(A) deleted the addition - Held that:- A clear finding is given by CIT(A) that no positive material is brought by the Assessing Officer on record to indicate that the said expenditure claimed by the assessee was bogus and/or the assessee had concealed its income or had furnished inaccurate particular of the income. These findings of the CIT(A) could not be controverted by learned D.R. of the Revenue. We also find that it is noted by the Assessing Officer in the penalty order that in the course of assessment proceedings, the assessee has filed details of various expenses but was unable to furnish complete vouchers in respect of expenses claimed. It is also noted by the Assessing Officer in the penalty order that the books of account of the assessee were rejected by the Assessing Officer u/s 145(3) of the Act and the Assessing Officer estimated the income by allowing expenses on estimate basis. Under these facts, the judgment of Naresh Chand Agarwal vs. CIT [2013 (6) TMI 68 - ALLAHABAD HIGH COURT ] by Learned A.R. of the assessee is squarely applicable. In that case also, the income was assessed by the Assessing Officer by applying the net profit rate of 8% and it was held by Hon'ble High Court that when the addition is made on estimate basis, no penalty u/s 271(1)(c) can be imposed. In the present case also, the disallowance is made on estimate basis and respectfully following this judgment, we are of the considered opinion that there is no infirmity in the order of CIT(A) and therefore, we decline to interfere in the order of CIT(A). - Decided in favour of assessee
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