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2013 (8) TMI 626 - AT - Income TaxPenalty u/s 271(1)(c) - CIT estimated profit rate @ 5% - Held that:- Tribunal in a large number of cases of assesses, carrying liquor trade has directed estimation of profit at the rate of 5% on the sales turnover of the assessee - Following decisions of Badri Prasad Bhagavandas & Co. Vs. CIT [1994 (10) TMI 268 - MADRAS HIGH COURT] - Decided against Revenue. Penalty u/s 271(1)(c) - Rejection of books of accounts - CIT deleted penalty - Held that:- Merely because the profit has been estimated and certain additions are made in the assessment would not automatically lead to imposition of penalty u/s 271(1)(c) of the Act. The additions made in assessment proceedings ipso facto does not lead to a conclusion that the assessee has concealed particulars of income or furnished inaccurate particulars of income. There must be material brought on record on the basis of which a conclusion can be formed that there is a conscious attempt on the part of the assessee to conceal its income or furnish inaccurate particulars of its income. It is not disputed that the major addition in case of the assessee is on account of estimation of profit - It is well settled principles of law that when profit is estimated there cannot be any inference that the assessee has concealed the income or furnished inaccurate particulars of income so as to attract the provisions of section 271(1)(c) of the Act - Following decisions of CIT vs. Iqbal Singh & Co. [2009 (3) TMI 568 - HIGH COURT OF PUNJAB AND HARYANA] and Eagle Synthetics (P) Ltd. Vs. Income-tax Officer [2010 (2) TMI 719 - ITAT, Ahmedabad] - Decided against Revenue.
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