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2011 (8) TMI 513 - AT - Income TaxPenalty levied u/s 271(1)(c) - G.P. addition on the ground that the addition was solely on estimation - The Hon'ble Punjab and Haryana High Court in the case of CIT v. Metal Products of India [1984 -TMI - 27885 - PUNJAB AND HARYANA High Court] observed that the addition if made on estimate under the proviso to section 145(1) of the Act by adopting the view that gross profit shown in the books of account was too low, then that does not automatically lead to the conclusion that there was failure to return the correct income by means of fraud or gross or wilful neglect - The provisions of sec. 271(1)(c) of the Act are not attracted in cases where the income of an assessee is assessed on estimate basis and additions are made therein - Since the difference in estimates was based on a difference of opinion and the revenue did not bring to notice any positive proof regarding concealment of income by the assessee, no hesitation in concluding that it is not a case fit for levy of penalty u/s 271(1)(c) of the Act - Decided in favour of assessee.
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