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2015 (10) TMI 2556 - AT - Income TaxPenalty levied u/s 271(1)(c) - Estimation of income on the basis of the material seized during the search conducted by the Excise authorities - Held that:- On the basis of admission made by the assessee, the income was estimated on the basis of past history of the assessee and that was based on the material found referred herein above . The addition made by the AO, though was challenged before ld. CIT (A) and before the ITAT, but the Tribunal sustained the addition on the basis of the material admitted by the assessee in the proceedings initiated by the Excise Department. In our view, the ld. Counsel for the assessee is not right in his contention that whenever an assessment is made on the basis of flat rate of profit on estimation basis, no inference can be made that the assessee has concealed the income. In the present case, the AO has estimated the income on the basis of the material seized during the search conducted by the Excise authorities and admission made by the assessee. Therefore it is not a case of mere estimation but was a case of deriving income based on undisclosed investment/purchases and undisclosed sales of the product. In our view, assessee has concealed the particulars of income and, therefore, the assessee is liable for imposition of penalty on account of concealed income. Therefore, we find no infirmity in the order of ld. CIT (A) which is confirmed. - Decided against assessee.
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